National Insurance UK — Rates, Thresholds & How It Works

What is National Insurance?

National Insurance (NI) is a tax on earnings that funds the State Pension, NHS, and welfare. Unlike income tax, NI has no personal allowance — it kicks in from the primary threshold.

Employee Rates 2025/26

• £12,570 — £50,270: 8%
• Above £50,270: 2%

Employer Rates

• Above £5,000: 15%

Employer NI is a hidden cost of employment. Someone on £35,000 costs their employer an additional £4,500 in NI.

Self-Employed

• Class 2: £3.45/week (if profits over £12,570)
• Class 4: 6% on profits £12,570—£50,270, 2% above

State Pension Qualification

You need 35 qualifying years of NI contributions for the full State Pension (£221.20/week in 2025/26). Check your record at gov.uk.

See your NI deductions: Take-Home Pay Calculator