How Much Are NI Contributions? Rates & Thresholds 2026/27

All Class 1 National Insurance rates and thresholds for the 2026/27 tax year (6 April 2026 – 5 April 2027), confirmed by HMRC on GOV.UK.

Employees pay Class 1 National Insurance through PAYE once earnings pass the primary threshold of £12,570 per year (£242 per week, £1,048 per month). The rates for 2026/27 are:

• 0% on earnings up to £12,570 (though earnings between the £129-per-week Lower Earnings Limit and £12,570 still build qualifying years for the State Pension).
• 8% on earnings from £12,570 up to the Upper Earnings Limit of £50,270.
• 2% on all earnings above £50,270.

NI is calculated per pay period, not cumulatively like income tax. This means a large bonus in one month attracts more NI in that month, even if the annual average would stay in the 8% band. Use our take-home pay calculator to see the net effect on any salary.

Employers pay secondary Class 1 NI at 15% on each employee's earnings above the £5,000-per-year secondary threshold (roughly £96 per week or £417 per month). Unlike employee NI, there is no upper earnings limit for employers — the 15% rate applies to all earnings above the threshold, however high the salary.

This cost sits on top of gross salary. For a £30,000 employee, the employer NI is £3,750/year (£312.50/month), making the total employment cost £33,750 before pension contributions. Eligible employers can offset up to £10,500/year through the Employment Allowance — see the Employment Allowance guide for eligibility.

For the full employer-side picture including Employment Allowance and category letters, see our dedicated employer NI rates 2026/27 guide.

A typical full-time employee aged 21+ earning £30,000 a year in 2026/27, paid monthly:

• Employee NI: £30,000 − £12,570 primary threshold = £17,430 liable. £17,430 × 8% = £1,394.40/year (≈ £116.20/month).
• Employer NI: £30,000 − £5,000 secondary threshold = £25,000 liable. £25,000 × 15% = £3,750/year (£312.50/month).
• Total NI cost: £1,394.40 (employee) + £3,750 (employer) = £5,144.40/year.

So the employee's NI reduces take-home pay by £1,394.40, while the employer pays a further £3,750 on top. Use our take-home pay calculator for the full net-pay picture including income tax.

For an employee earning £60,000 in 2026/27, NI splits across the two employee bands:

• £12,570 to £50,270 = £37,700 at 8% = £3,016.
• £50,270 to £60,000 = £9,730 at 2% = £194.60.
• Total employee NI: £3,210.60/year.

The employer's contribution has no upper limit: £60,000 − £5,000 = £55,000 at 15% = £8,250/year.

Notice how the employee rate drops to 2% above £50,270 while the employer rate stays at 15% throughout — a key difference when modelling senior hires with our employee cost calculator.

Most employees use category letter A, but HMRC provides other letters for specific groups. The main differences are in employer NI; employee rates stay the same across standard letters.

Assigning the wrong category letter is a common and costly payroll error. Check each new starter against the category letter guidance on GOV.UK and keep evidence (proof of age, apprenticeship agreement, veteran status) on file.

NI and income tax are both deducted through PAYE, but they work differently:

• NI has the same rates across the UK. Income tax bands differ in Scotland (six bands from 19% to 48% above £125,140).
• NI is per pay period; income tax is cumulative across the tax year.
• NI drops to 2% above £50,270; income tax rises to 40% then 45%.
• NI only applies to employment earnings; income tax also hits pensions, savings, dividends, and most other income.
• Both use the £12,570 personal allowance/primary threshold in 2026/27, which tapers away above £100,000 for income tax (not for NI).

To verify NI on a payslip, follow these steps.

• Step 1. Find your gross pay for the period and your NI category letter (usually A for standard employees 21+).
• Step 2. Subtract the period threshold — £242 per week or £1,048 per month for employees (primary threshold).
• Step 3. Multiply the remainder by 8% (or 2% for the portion above £50,270/year, i.e. £4,189/month).
• Step 4. Compare the result with the NI line on the payslip.

Small differences usually come from rounding or from per-period calculation on variable pay. If the figure is consistently wrong, raise it with payroll first, then check your personal tax account on GOV.UK.

The 2026/27 figures are unchanged from 2025/26, which was the second year in a row the main rates were held:

• Employee NI: 8% (£12,570–£50,270), 2% above £50,270 — unchanged since 2025/26
• Employer NI: 15% above £5,000 — unchanged since April 2025
• Secondary threshold: £5,000 — unchanged since April 2025
• Primary threshold: £12,570 — frozen since 2021/22
• Upper Earnings Limit: £50,270 — frozen since 2021/22
• Lower Earnings Limit: £129/week (£6,708/year) — unchanged
• Employment Allowance: £10,500 — unchanged
• Upper secondary threshold (under-21s/apprentices): £50,270 — unchanged

Before April 2025, the employer rate was 13.8% and the secondary threshold was £9,100. The current figures represent a 1.2 percentage-point rate increase and a £4,100 threshold reduction, materially raising employer NI.

Directors are different because National Insurance is assessed on an annual earnings period. Payroll may use the annual method from the start of the year or the alternative method during the year with a final annual recalculation. This matters for directors paid irregularly, through bonuses or with low monthly salary plus dividends. Employee NI and employer NI can appear low early in the year and then catch up when cumulative earnings pass the annual thresholds.

The standard employee often uses category A, but payroll must choose the correct category letter. Under-21 employees, apprentices under 25, qualifying veterans and Freeport or Investment Zone employees can have different employer NI treatment up to special thresholds. Category errors can overstate or understate employer cost, so the employer NI calculator should be paired with a category-letter check before payroll is finalised.

An employee with more than one job can pay NI separately in each employment, unlike income tax which is coordinated through tax codes. Deferment may apply in some multi-employment cases. Benefits in kind are normally not employee Class 1 NI, but employers may pay Class 1A NI on P11D benefits. Student loans are separate from NI and should not be mixed into NI rate calculations.