National Insurance (NI) pays for the State Pension and some benefits. How much you pay depends on whether you're employed or self-employed and how much you earn.
Employees (Class 1)
| Earnings a year | Employee rate |
|---|---|
| Up to £12,570 | 0% |
| £12,570 to £50,270 | 8% |
| Over £50,270 | 2% |
The monthly thresholds are £1,048 and £4,189, and the weekly thresholds are £242 and £967. Unlike income tax, employee NI is worked out on each pay period separately, so a one-off bonus can mean more NI in that month than a yearly estimate suggests.
Self-employed (Class 4)
Self-employed people pay Class 4 NI on profits: 6% between £12,570 and £50,270, and 2% above that. Class 2 contributions are no longer compulsory; you can pay them voluntarily to protect your State Pension record if your profits are low. Try the self-employed tax calculator.
Employers
Employers pay 15% on each employee's earnings above £5,000 a year. This doesn't come out of your pay, but it's one reason salary sacrifice schemes are popular with employers.
When you stop paying
You stop paying employee NI once you reach State Pension age, even if you keep working. Your employer will need proof of your age.
Examples
- £30,000 salary: (£30,000 − £12,570) × 8% = £1,394.40 a year.
- £60,000 salary: £37,700 × 8% = £3,016, plus £9,730 × 2% = £194.60. Total £3,210.60.
See your full payslip in the take-home pay calculator.
Last reviewed October 2026.