National Insurance Calculator 2025-26
The 2025–26 tax year brought significant National Insurance changes. Employee NI rates fell from 10% to 8% (effective from January 2024, carried into 2025–26), while employer NI increased from 13.8% to 15% and the secondary threshold — below which employer NI is not charged — was reduced from £9,100 to £5,000. These are UK-wide rates applying equally in England, Scotland, Wales, and Northern Ireland.
Rates correct for 2025-26 · Reviewed by the Richard Ross · Last updated April 2026
2025-26 at a glance
- ›Employee NI: 8% on earnings £12,571–£50,270; 2% above £50,270
- ›Employer NI: 15% on earnings above £5,000 secondary threshold
- ›Employee PT (primary threshold): £12,570/year
- ›Employee UEL (upper earnings limit): £50,270/year
- ›Employer secondary threshold: £5,000/year (reduced from £9,100)
- ›Class 2 NI for self-employed: £3.45/week (payable via Self Assessment)
- ›Class 4 NI for self-employed: 6% on profits £12,570–£50,270; 2% above
Employee NI (Class 1)
| Earnings | Threshold | Rate |
|---|---|---|
| Below Lower Earnings Limit | Up to £6,396/yr | 0% (but earns NI record) |
| LEL to Primary Threshold | £6,397 – £12,570/yr | 0% |
| Primary Threshold to Upper EL | £12,571 – £50,270/yr | 8% |
| Above Upper Earnings Limit | Over £50,270/yr | 2% |
Employer NI (Class 1)
| Earnings | Threshold | Rate |
|---|---|---|
| Below Secondary Threshold | Up to £5,000/yr | 0% |
| Above Secondary Threshold | Over £5,000/yr | 15% |
Calculate your NI for 2025-26
Your results will appear here
How National Insurance is calculated in 2025-26
The main change in 2025–26 relative to 2024–25 is for employers: the employer NI rate rose from 13.8% to 15%, and the secondary threshold dropped from £9,100 to £5,000. This means employers pay NI on a larger portion of each employee's salary. For employees, the rate reduction from 12% to 10% (November 2023) and then to 8% (January 2024) is carried forward into 2025–26.
How employee NI is calculated
Employee Class 1 NI is calculated on weekly or monthly pay. Annually, NI of 8% applies to earnings between the primary threshold (£12,570) and the upper earnings limit (£50,270). Above the UEL, only 2% NI applies. Below the lower earnings limit (£6,396), no NI is due and no NI record is built. Between the LEL and the primary threshold, no NI cash is paid but the year still counts toward the 35-year NI record needed for the full new State Pension.
Worked example: employee NI on a £30,000 salary
Employee NI on £30,000 in 2025-26:
- Earnings up to £12,570 (primary threshold): £0 NI
- £12,571 to £30,000 (£17,430) at 8%: £1,394.40
- Total employee NI: £1,394.40/year (£116.20/month)
Employer NI: 15% on earnings above £5,000 = £3,750.00
Total cost to employer: approximately £33,750 including employer NI. See also: income tax on £30,000 and full take-home pay.
How employer NI is calculated
Employer Class 1 NI is a tax on employment paid by the employer, not deducted from the employee's wages. For 2025-26, the rate is 15% on earnings above the secondary threshold of £5,000. There is no upper limit — employer NI continues at the same rate on all earnings above the threshold. This is a significant cost on top of gross salary that affects hiring decisions and total compensation budgets.
NI on bonuses and overtime
Bonuses and overtime are subject to NI at the same rates as regular pay. A bonus is added to your total earnings for the year, and NI is calculated on the combined amount. If your total earnings (salary plus bonus) exceed the upper earnings limit of £50,270, the portion above that limit attracts NI at 2% rather than 8%. Both income tax and NI apply to bonuses — use the bonus tax calculator to see the combined deduction.
Self-employed NI: Class 4 and Class 2
Self-employed individuals pay Class 4 NI at 6% on profits between £12,570 and £50,270, and 2% on profits above £50,270. Class 2 NI (£3.45 per week) is payable via Self Assessment for those with profits above the small profits threshold (£6,725). Class 2 NI builds entitlement to the state pension. Self-employed NI is collected through Self Assessment rather than PAYE. Contractors should check their IR35 status — inside IR35, Class 1 employee NI applies to the full deemed salary instead.
NI record and State Pension
Your NI record determines your entitlement to the State Pension and contributory benefits. You need 35 qualifying years to receive the full new State Pension. A qualifying year is one in which you earn above the lower earnings limit (£6,396) and make or are credited with NI contributions. You stop paying employee NI at State Pension age (currently 66), but earnings between the LEL and primary threshold still count toward your record even though no cash NI is deducted. Student loan repayments are a separate deduction collected alongside NI via PAYE.
NI is UK-wide
Unlike income tax, National Insurance is not devolved. The same rates and thresholds apply in England, Scotland, Wales, and Northern Ireland. Scottish taxpayers pay the same NI as their counterparts in England on identical earnings — dividends and capital gains are not subject to NI regardless of jurisdiction.
Sources: HMRC — National Insurance rates and categories (gov.uk), HMRC — How much NI you pay (gov.uk)
Frequently asked questions
What is the employee National Insurance rate for 2025-26?
8% on earnings between the primary threshold (£12,570) and the upper earnings limit (£50,270). The rate is 2% on earnings above £50,270. This 8% rate was introduced in January 2024 (reduced from 10%) and carried into 2025–26.
What changed in employer National Insurance for 2025-26?
From April 2025, the employer NI rate increased from 13.8% to 15%. The secondary threshold — the salary level above which employer NI begins — was reduced from £9,100 to £5,000. For a typical employee earning £30,000, this adds around £800–900 per year to the employer's cost.
Do I pay National Insurance if I earn below £12,570?
Not in cash terms — but earnings between the lower earnings limit (£6,396) and the primary threshold (£12,570) still count towards your NI record and state pension entitlement. This means working part-time or on a low salary can still build your NI record without any actual NI deduction from pay.
Is National Insurance different in Scotland?
No — National Insurance is a UK-wide tax set by Westminster. Scottish taxpayers pay the same NI rates and at the same thresholds as taxpayers in England, Wales, and Northern Ireland. Only income tax rates differ between Scotland and the rest of the UK.
What NI do self-employed people pay in 2025-26?
Self-employed people pay Class 4 NI at 6% on profits between £12,570 and £50,270, and 2% on profits above £50,270. Class 2 NI (£3.45 per week) is also payable via Self Assessment for those with profits above the small profits threshold (£6,725). Class 2 NI builds entitlement to the state pension and contributory benefits.
How much NI do I pay on a £30,000 salary in 2025-26?
On a £30,000 salary: no NI on the first £12,570. 8% on earnings from £12,571 to £30,000 — that is £17,430 at 8% = £1,394.40 per year. Your employer separately pays 15% on earnings above £5,000, adding approximately £3,750 to their cost.
Do I pay National Insurance on a bonus in 2025-26?
Yes. Bonuses are treated as earnings for NI purposes and attract the same Class 1 rates as regular pay — 8% on earnings between the primary threshold and the upper earnings limit, and 2% above. A bonus that pushes your total earnings above £50,270 means the portion above that threshold is charged at 2% rather than 8%.
How does National Insurance differ from income tax?
Income tax is charged on all taxable income (salary, pensions, rental income, dividends) at progressive rates set by HMRC (or the Scottish Parliament for Scottish taxpayers). National Insurance is charged only on earned income — primarily employment earnings and self-employment profits. Dividends and capital gains do not attract NI. NI rates and thresholds are UK-wide and identical in all four nations.
Does salary sacrifice reduce my National Insurance?
Yes. Salary sacrifice reduces your gross salary before NI is calculated. If you sacrifice £5,000 into a pension, your NI-able earnings fall by £5,000, saving you £400 (8% of £5,000) in employee NI. Your employer also saves 15% (£750) in employer NI on the sacrificed amount. This NI saving is the key advantage of salary sacrifice over personal pension contributions.
What happens to NI when I reach State Pension age?
Employees stop paying Class 1 National Insurance when they reach State Pension age (currently 66), even if they continue working. Employers continue to pay employer NI on your earnings at the standard rate. Self-employed workers stop paying Class 4 NI from the start of the tax year in which they reach State Pension age.
Related calculators
This calculator provides estimates only. Rates are based on published HMRC figures for 2025-26. Credibrate is not a tax adviser. For personalised advice speak to a qualified accountant.