National Insurance UK 2026: Rates, Thresholds & How It Works

Chandraketu Tripathi

Finance Editor, Kaeltripton

Published 5 Apr 2026

Last reviewed 4 May 2026

✓ Fact-checked

By Chandraketu Tripathi | Updated April 2026

National Insurance is separate from income tax but calculated in a similar way — it funds the State Pension, NHS, and other welfare benefits. In 2026-27, employees pay 8% NIC on earnings above £12,570, self-employed pay 6% (Class 4), and employers pay 15% on employee earnings above £5,000. Understanding NIC is essential for both your take-home pay and your eventual State Pension entitlement.

Key Facts

Employee NIC rate: 8% (£12,570-£50,270) then 2% above | Employer NIC: 15% above £5,000/year | Self-employed Class 4: 6% (£12,570-£50,270) | State Pension qualifying years needed: 35

National Insurance Rates UK 2026-27

Source: GOV.UK, HMRC. April 2026. Employee primary threshold and self-employed lower profits limit both £12,570.
NIC Class	Who Pays	Rate	Thresholds
Class 1 (Employee)	Employees	8%	On earnings £12,570-£50,270/year
Class 1 (Employee upper)	Employees	2%	On earnings above £50,270/year
Class 1 (Employer)	Employers	15%	On employee earnings above £5,000/year
Class 2	Self-employed (profits above £6,725)	£0 — credits awarded automatically	Voluntary: £3.45/week if profits under £6,725
Class 4	Self-employed	6%	On profits £12,570-£50,270/year
Class 4 upper	Self-employed	2%	On profits above £50,270/year
Class 3 (Voluntary)	Gaps in NIC record	£17.45/week	To top up State Pension record

NIC Calculator UK 2026: How Much Do You Pay?

Approximate. April 2026. Employer NIC: 15% on earnings above £5,000/year secondary threshold.
Annual Salary	NIC-able Earnings	Employee NIC (8%)	Employer NIC (15%)	Total NIC
£20,000	£7,430	£594	£2,250	£2,844
£30,000	£17,430	£1,394	£3,750	£5,144
£40,000	£27,430	£2,194	£5,250	£7,444
£50,270 (upper limit)	£37,700	£3,016	£6,791	£9,807
£60,000	£37,700 + 2% on £9,730	£3,016 + £195 = £3,211	£8,250	£11,461
£80,000	£37,700 + 2% on £29,730	£3,016 + £595 = £3,611	£11,250	£14,861

Employer NIC: The April 2025 Change That Increased Costs

From April 2025, the employer NIC secondary threshold dropped from £9,100 to £5,000 per year — meaning employers started paying NIC on £4,100 more of each employee's salary. At 15%, this is an extra £615 per employee per year. For a business with 20 employees, that's £12,300 in additional employer NIC annually. The Employment Allowance was increased to £10,500 from April 2025 to offset this for smaller businesses — eligible employers can deduct up to £10,500 from their employer NIC bill each year.

Protecting Your State Pension: NIC Qualifying Years

Check your record — gov.uk/check-national-insurance-record shows how many qualifying years you have
35 years needed for full new State Pension (£230.25/week in 2026-27)
Minimum 10 years to receive any State Pension
Gaps can be filled — buy voluntary Class 3 NIC at £17.45/week to fill gaps from 2006-07 onwards
Credits count — NIC credits from Child Benefit, carers, and certain benefits count as qualifying years
Check before retirement — you can fill gaps up to 6 years back (extended to 2006 until April 2025 — now standard 6 years)

Frequently Asked Questions

How much National Insurance do I pay UK 2026?

Employees pay Class 1 National Insurance at 8% on earnings between £12,570 and £50,270 per year, and 2% on earnings above £50,270. The NIC primary threshold of £12,570 is aligned with the income tax personal allowance and frozen until 2028. Example: on a £35,000 salary, you pay NIC on £22,430 (£35,000 - £12,570) at 8% = £1,794/year.

Do self-employed people pay National Insurance UK?

Self-employed people pay Class 4 NIC at 6% on profits between £12,570 and £50,270, and 2% above £50,270. Class 2 NIC (a flat weekly amount) was effectively abolished for most self-employed people from April 2024 — those with profits above £6,725 get NIC credits automatically. Those with profits below £6,725 can pay voluntary Class 2 NIC (£3.45/week in 2026-27) to protect their State Pension record.

How does National Insurance affect my State Pension?

You need 35 qualifying years of National Insurance contributions (or credits) to receive the full new State Pension of £230.25/week in 2026-27. Each qualifying year requires earnings above the Lower Earnings Limit (£6,396 in 2026-27) or NIC credits through working, claiming benefits, or caring responsibilities. You need a minimum of 10 qualifying years to receive any State Pension. Check your NIC record at gov.uk/check-national-insurance-record.

What is the employer National Insurance rate UK 2026?

Employers pay Class 1 secondary NIC at 15% on employee earnings above £5,000 per year (the secondary threshold, reduced from £9,100 in April 2025). This is a significant cost increase for employers introduced in the Autumn Budget 2024. For an employee earning £35,000, employer NIC = (£35,000 - £5,000) × 15% = £4,500/year. The Employment Allowance (£10,500 from April 2025) allows eligible small businesses to offset employer NIC.

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Disclaimer: Always verify with GOV.UK, HMRC, VOA, and Acas. Sources: gov.uk, bcpcouncil.gov.uk, bristol.gov.uk, commonslibrary.parliament.uk, gtlaw.com, kingsbridge.co.uk, ir35update.co.uk. April 2026.