National Insurance Explained 2026/27
Employee and employer National Insurance rates and thresholds for 2026/27, with worked examples.
National Insurance (NI) is paid on your earnings to build your entitlement to the State Pension and some benefits. Employees pay Class 1 NI through payroll.
Employee rates 2026/27
| Annual earnings | Rate |
|---|---|
| Up to £12,570 | 0% |
| £12,570 – £50,270 | 8% |
| Over £50,270 | 2% |
Employer National Insurance
Employers pay 15% on each employee's earnings above £5,000 a year. This doesn't come out of your pay, but it is part of what you cost your employer.
Things to know
- NI is worked out per pay period, so irregular pay or bonuses can change the amount you pay.
- You stop paying employee NI when you reach State Pension age.
- Salary sacrifice pension contributions reduce your NI; net pay pension contributions do not.