How employee National Insurance works in 2026/27
National Insurance is the second deduction on almost every UK payslip, sitting alongside income tax. If you work for an employer you pay Class 1 employee contributions, and for the 2026/27 tax year (6 April 2026 to 5 April 2027) the annual thresholds are:
- £0 to £12,570: no National Insurance
- £12,570 to £50,270: 8% (the main rate)
- Above £50,270: 2%
Unlike income tax, the rates and thresholds are the same across the whole UK, so the figure is identical whether you are paid in Cardiff, Glasgow or Belfast. Because the 8% band is capped at £50,270, the most anyone pays at the main rate is £3,016 a year (that is 8% of the £37,700 between the two thresholds). Everything above the cap is charged at just 2%, which is why NI feels lighter the further your pay climbs past £50,270.
Worked examples
Notice how flat the curve is at the top: the £60,000 earner is paid £25,000 more than the £35,000 earner but pays only £1,416.20 more NI. As a share of salary, NI works out at about 5.1% on £35,000 and about 5.4% on £60,000, which is why the effective rate row in the calculator barely moves once you pass the upper threshold.
What National Insurance actually pays for
NI began in 1911 as a genuine insurance scheme and it still works on a contributory principle. Your payments fund the state pension, contributory benefits such as New Style Jobseeker's Allowance, and a share of NHS funding. More importantly for you, each year you pay enough NI (or receive credits, for example while claiming Child Benefit) counts as a qualifying year towards your state pension. You usually need around 35 qualifying years for the full new state pension, so gaps in your record can cost you real money decades later. You can check your record free on gov.uk.
What this calculator leaves out
The figures here are annual employee Class 1 contributions on a straightforward salary. In practice NI is calculated on each payslip separately, so bonuses, commission or irregular hours can nudge the yearly total. Salary sacrifice pension schemes reduce the pay NI is charged on, employer contributions (which your employer pays on top of your salary, not out of it) are a separate calculation entirely, the self-employed pay Class 4 on profits at different rates, and employees over state pension age stop paying NI altogether. For income tax on top of NI, try the take-home pay calculator below. This is guidance, not tax advice: for your own record and rates, see gov.uk.
Frequently asked questions
How much National Insurance will I pay in 2026/27?
As an employee you pay nothing on the first £12,570 of annual earnings, 8% on earnings between £12,570 and £50,270, and 2% on everything above £50,270. On a £35,000 salary that works out at £1,794.40 for the year.
What does National Insurance pay for?
NI contributions fund the state pension, contributory benefits such as New Style Jobseeker's Allowance and Employment and Support Allowance, and part of NHS funding. Paying NI also builds the qualifying years you need for a full state pension.
Is National Insurance different in Scotland or Wales?
No. Unlike income tax, National Insurance rates and thresholds are set UK-wide, so the figures here apply in England, Scotland, Wales and Northern Ireland alike. Only income tax bands differ between the nations.
Why is the NI on my payslip slightly different?
Employee NI is worked out separately on each payslip rather than on your annual total, so bonuses, overtime or uneven pay can shift the yearly amount slightly. Salary sacrifice arrangements, such as some pension schemes, also reduce the pay that NI is charged on.
Do self-employed people pay the same National Insurance?
No. The self-employed pay Class 4 contributions on their profits through Self Assessment, at different rates from employees, and Class 2 is now largely voluntary. Check gov.uk for the current self-employed rates.