National Insurance Rates
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Overview
National Insurance rates determine what you contribute towards certain state benefits, the State Pension among them. Anyone working in the UK, whether employed or self-employed, normally pays National Insurance contributions (NICs) scaled to their earnings. This guide sets out how the rates work, who is liable, and how they affect your income, so you can plan ahead and keep on the right side of HMRC.
What Are National Insurance Rates?
The rates describe how much you contribute depending on your income and employment status. The money helps pay for the State Pension, the NHS and other state benefits. Employers pay National Insurance on top of an employee’s wages. Self-employed people pay under a different set of classes and rates, settled through Self Assessment. Your rate depends on how much you earn and which NI class applies: Class 1 for employees, and Classes 2 and 4 for the self-employed. Knowing your rate helps you see what comes out of your pay, how it changes your take-home income, and which benefits you are building towards.
Getting Started
First work out which class applies to you. Employees normally pay Class 1, taken automatically by the employer through PAYE. The self-employed pay Class 2 and Class 4 through their Self Assessment return. Check your earnings, learn the current rates and review your contribution record, so you stay compliant and qualify for benefits such as the State Pension.
Class 1 (Employees and Employers)
Employees begin paying Class 1 from age 16, provided their earnings are high enough. Employee contributions end when they reach State Pension age, but the employer’s contributions carry on. Employer NIC is reduced to 0% on pay up to the Upper Secondary Threshold of £967 per week for employees under 21 and apprentices under 25. The same relief applies to veterans during their first 12 months in a job.
Employee rates
2026/27
2025/26
Employer rates
2026/27
2025/26
Other employer contributions
Class 1A: 15% on nearly all taxable benefits given to employees, and on certain taxable termination and sporting testimonial payments above £30,000.
Class 1B: 15% on taxable PAYE Settlement Agreements.
Classes 2 and 4 (Self-Employed)
Self-employed people start paying Class 2 and Class 4 from age 16, if their profits are sufficient. Class 2 stops at State Pension age, while Class 4 stops from the beginning of the tax year after the person reaches it. Since 6 April 2024, paying Class 2 is no longer compulsory, although it can still be paid voluntarily.
Class 2
2026/27
2025/26
Class 4
2026/27
2025/26
Class 3 (Voluntary)
A full State Pension requires 35 years of NI contributions (30 years if State Pension age falls before 6 April 2016). Class 3 voluntary contributions can fill existing gaps in your record or prevent new ones.
Flat rate: £18.40 per week for 2026/27 (£17.75 in 2025/26).
Who Pays National Insurance?
Earnings Threshold
Most workers in the UK pay National Insurance once earnings pass set thresholds.
Employee Class One
Workers above primary threshold pay Class 1 NI deducted via employer PAYE codes.
Self-Employed Duty
They typically pay Class 2 and Class 4 via Self Assessment based on profit sums.
Employer Paid Duty
Employers pay National Insurance on employee earnings above set thresholds here.
Voluntary Pay Rate
Non-workers or low earners can choose to pay Class 3 National Insurance amounts.
State Pension Gaps
Voluntary Class 3 payments help plug NI record gaps for full State Pension aims.
How to Pay National Insurance
Employee PAYE Tax
Class 1 is taken from wages via PAYE, while employers add their own contribution on top.
Self Employed Tax
Class 2 flat sums and Class 4 profit rates are paid through Self Assessment each year.
Voluntary Records
Class 3 voluntary payments protect pension rights, while clear logs help claim benefits.