Your Details
Your NI Breakdown
Figures are estimates based on HMRC rates. They do not include Income Tax or other deductions.
How National Insurance Works
National Insurance (NI) is a tax on earnings paid by both employees and employers. As an employee, your contributions are deducted from your wages by your employer through PAYE (Pay As You Earn) before you receive your pay.
Employee NI contributions count towards your entitlement to certain state benefits, including the State Pension, Maternity Allowance, and contribution-based Jobseeker's Allowance.
Class 1 Employee NI (2026/27)
Class 1 NI is the type paid by employees. You only pay NI on earnings above the primary threshold. The rates for 2026/27 are:
- 0% on earnings up to £12,570 (primary threshold)
- 8% on earnings between £12,570 and £50,270 (main rate)
- 2% on earnings above £50,270 (upper rate)
NI Categories Explained
Your NI category letter determines the rates you and your employer pay. Most employees are Category A. Other categories offer reduced rates for specific groups:
- Category A — standard rate for employees aged 21 and over
- Category H — apprentices under 25
- Category M — employees under 21
- Category Z — employees under 21 with deferred NI (zero employee NI)
What are the Employee National Insurance Rates for 2026/27?
In the 2026/27 tax year, employees pay Class 1 National Insurance at 8% on earnings between £12,570 and £50,270, and 2% on earnings exceeding £50,270. Earnings below £12,570 incur zero National Insurance deductions.
| Earnings Band | Annual Threshold | Weekly Equivalent | Employee Rate |
|---|---|---|---|
| Below Primary Threshold | £0 – £12,570 | £0 – £241.73 | 0% |
| Primary to Upper Earnings Limit | £12,571 – £50,270 | £241.74 – £966.73 | 8% |
| Above Upper Earnings Limit | Above £50,270 | Above £966.73 | 2% |
Source: HMRC — National Insurance rates and categories (gov.uk)
How Much Employer National Insurance is Charged in 2026/27?
Employers pay Class 1 Secondary National Insurance at a statutory rate of 15% on employee earnings above the £5,000 annual secondary threshold. Eligible employers can reduce their overall liability by up to £10,500 using the Employment Allowance.
| Employer Liability Type | Earnings Threshold | Statutory Rate |
|---|---|---|
| Class 1 Secondary NI (2026/27) | Earnings above £5,000 / year (£96.15/wk) | 15% |
| Employment Allowance Offset | All qualifying employers | Up to £10,500 annual reduction |
Step-by-Step National Insurance Calculations for 2026/27
The worked examples below demonstrate employee Class 1 deductions and employer cost interactions across standard UK wage levels.
£25,000 Salary (Standard Earner)
£50,000 Salary (Upper Boundary)
£80,000 Salary (Higher Earner)
Frequently Asked Questions
For 2026/27, employees pay Class 1 NI at 8% on earnings between £12,570 and £50,270, and 2% on earnings above £50,270. On a £35,000 salary, annual employee NI is £1,794.40.
The primary threshold for 2026/27 is £12,570 per year (£241.73 per week). Employees pay 0% National Insurance on earnings up to this threshold.
Category A is standard employee rate (8%/2%). Category H applies to apprentices under 25, Category M to employees under 21, and Category Z to exempt individuals.
No. Earnings below £12,570 incur zero employee NI. However, earning above the Lower Earnings Limit (£6,396/yr) protects your qualifying years for the UK State Pension.
Employers pay Class 1 Secondary NI at 15% on employee earnings above £5,000 per year. Eligible businesses can offset up to £10,500 via the Employment Allowance.
No. National Insurance funds state benefits like the State Pension, while Income Tax funds general government spending. Both start at the £12,570 threshold in 2026/27.