National Insurance Rates 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.
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
National Insurance 2025-26 — explained
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.
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. This is a cost on top of gross salary — a £30,000 salary costs the employer approximately £33,750 including employer NI.
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.
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.
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.