National Insurance explained.

What is National Insurance?

National Insurance contributions help build entitlement to certain state benefits and the State Pension. The class and amount depend on the person’s work and earnings.

Employee National Insurance

Most employees pay Class 1 contributions at 8% on earnings between £242 and £967 a week, then 2% on earnings above £967. The monthly equivalents are £1,048 and £4,189. The exact result depends on the category letter and payroll period.

Employer National Insurance

Employers normally pay secondary Class 1 National Insurance at 15% on earnings above the £481 weekly secondary threshold, or £2,083 a month. Special category letters and reliefs can change the result.

Self-employed National Insurance

For 2026 to 2027, self-employed people pay Class 4 at 6% on profits over £12,570 up to £50,270, then 2% above £50,270. Voluntary Class 2 is £3.65 a week where applicable.

Responsibilities

• Use the correct employee category and payroll information.
• Apply current thresholds and rates for the tax year.
• Report contributions through the appropriate process.
• Keep payroll and profit records that support the calculation.

Related guides.

Check rates, thresholds and deadlines for the correct tax year before you rely on them.