National Insurance comes out of almost every payslip in the UK, and employers pay a second layer of it on top. The rates changed sharply in April 2025, when employer National Insurance rose to 15% and the threshold it starts at fell to £5,000, and those figures carry through unchanged into 2026/27. This guide puts every current rate and threshold in one place: what employees pay, what employers pay, the category letters that change the maths, and worked examples at common salaries.
QUICK ANSWER
For 2026/27, employees pay National Insurance at 8% on earnings between £12,570 and £50,270 a year, then 2% above that. Employers pay 15% on earnings above £5,000 a year for most staff. Eligible employers can take up to £10,500 off their employer bill with the Employment Allowance.
In this guide
Employee National Insurance Rates 2026/27
Most employees are in category A, and their National Insurance is worked out on each pay period in bands. Nothing is due on earnings below the primary threshold, the main rate applies up to the upper earnings limit, and a lower rate applies above it.
| Earnings band | Per week | Per month | Per year | Employee rate |
|---|---|---|---|---|
| Lower earnings limit | £129 | £559 | £6,708 | 0%, but the year still counts towards your State Pension |
| Primary threshold | £242 | £1,048 | £12,570 | 0% below this point |
| Main band | £242 to £967 | £1,048 to £4,189 | £12,570 to £50,270 | 8% |
| Upper earnings limit and above | Over £967 | Over £4,189 | Over £50,270 | 2% |
Two things catch people out. First, National Insurance is calculated per pay period, not on your annual total, so a bonus month or a mid-year job change can leave your payslip looking different from a simple annual calculation. Second, earnings between the lower earnings limit and the primary threshold cost you nothing but still build your State Pension record, which is why part-time work still counts.
To see the exact figure for your own salary, use our National Insurance calculator, which shows the full breakdown month by month.
Employer National Insurance Rates 2026/27
Employer National Insurance is paid by the employer on top of gross pay. It never appears as a deduction on the employee’s payslip, but it is a real cost of employing someone and it rose sharply from April 2025.
| Employer item | 2026/27 figure |
|---|---|
| Employer rate above the secondary threshold | 15% |
| Secondary threshold (where employer NI starts) | £96 a week, £417 a month, £5,000 a year |
| Upper secondary threshold for staff under 21, apprentices under 25 and veterans | £50,270 a year (employer rate 0% up to this point) |
| Employment Allowance | Up to £10,500 off the employer NI bill |
| Class 1A (on benefits in kind and taxable termination payments over £30,000) | 15% |
| Class 1B (on PAYE Settlement Agreements) | 15% |
The £5,000 secondary threshold is per employee, not per business, and it is applied in each pay period as £96 a week or £417 a month. Because the threshold is much lower than the old £9,100 level, employer National Insurance now bites on part-time and lower-paid roles that used to fall outside it.
What the Rates Mean at Real Salaries
Annual figures make the two layers easier to see. These examples use category A, a full tax year, and no Employment Allowance.
| Gross salary | Employee NI (8% and 2% bands) | Employer NI (15% above £5,000) | Total cost to the employer |
|---|---|---|---|
| £25,000 | £994.40 | £3,000 | £28,000 |
| £30,000 | £1,394.40 | £3,750 | £33,750 |
| £40,000 | £2,194.40 | £5,250 | £45,250 |
| £50,000 | £2,994.40 | £6,750 | £56,750 |
| £60,000 | £3,210.60 | £8,250 | £68,250 |
Worked example: on a £30,000 salary, the employee pays 8% of £17,430 (the slice between £12,570 and £30,000), which is £1,394.40 a year. The employer pays 15% of £25,000 (everything above the £5,000 secondary threshold), which is £3,750. So a £30,000 salary costs the employer £33,750 before pension contributions.
If you are comparing a salary with a contract day rate, our umbrella company calculator works an assignment rate back to take-home pay with employer National Insurance taken out along the way.
National Insurance Category Letters Explained
The category letter on your payslip tells payroll which rates and thresholds to apply. Most people are category A and never need to think about it, but the letter matters a lot for younger staff, apprentices and veterans, because the employer rate is 0% on a much bigger slice of their pay.
| Letter | Who it is for | Employee rate (main band) | Employer rate |
|---|---|---|---|
| A | Standard rate for most employees | 8% | 15% above £5,000 |
| B | Married women and widows with a reduced rate election | 1.85% | 15% above £5,000 |
| C | Employees over State Pension age | None | 15% above £5,000 |
| H | Apprentices under 25 | 8% | 0% up to £50,270, then 15% |
| J | Employees who can defer NI (more than one job) | 2% | 15% above £5,000 |
| M | Employees under 21 | 8% | 0% up to £50,270, then 15% |
| V | Armed forces veterans in their first civilian job | 8% | 0% up to £50,270, then 15% |
| Z | Employees under 21 who can defer NI | 2% | 0% up to £50,270, then 15% |
The practical point for employers: hiring an employee under 21, a qualifying apprentice under 25, or a veteran in their first year of civilian work removes employer National Insurance on earnings up to £50,270, which is a saving of up to £6,750 per person compared with a standard category A employee at the same salary point.
The Employment Allowance
The Employment Allowance takes up to £10,500 a year off an employer’s secondary Class 1 National Insurance bill. It is not automatic: you claim it through payroll software or HMRC’s tools, and it is used up gradually against each payroll bill until it runs out or the tax year ends.
Most employers can claim, including larger ones, because the old rule that blocked employers with a previous-year NI bill of £100,000 or more was removed in April 2025. The main group that still cannot claim is a company where the only employee earning above the secondary threshold is a single director. Only one business in a group of connected companies can claim.
For a small employer, the allowance can wipe out most of the bill. A business with three staff on £30,000 each owes £11,250 of employer National Insurance before the allowance, and just £750 after claiming the full £10,500.
Check your own numbers
The free National Insurance calculator shows employee NI at any salary with a month-by-month breakdown, using the 2026/27 rates in this guide.
Use the National Insurance calculatorSelf-Employed National Insurance in Brief
If you are self-employed, you pay different classes. Class 4 is the main one: 6% on annual profits between £12,570 and £50,270, then 2% on profits above that, collected through Self Assessment. Class 2 works as a credit rather than a bill: if your profits are £7,105 or more, you are treated as having paid it and your State Pension record is protected. If your profits are below £7,105, you can pay Class 2 voluntarily at £3.65 a week to protect your record.
Where the Official Figures Come From
Every rate and threshold in this guide matches HMRC’s published tables for employers for 2026 to 2027 on GOV.UK, and the category letter rules in HMRC’s guide to National Insurance rates and categories. The main thresholds are frozen, so the same figures are expected to run until April 2031 unless a future Budget changes them.
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