National Insurance (NI) is a tax on earnings paid by employees, employers and the self-employed, funding the State Pension, NHS and statutory benefits. In 2026/27 employees pay 8% on earnings between £12,570 and £50,270, and 2% above that.
2026/27 Rates — All Classes
ClassWho PaysRateThreshold
Class 1Employees8%£12,570–£50,270/yr
Class 1Employees2%Above £50,270/yr
Class 1 (secondary)Employers15%Above £5,000/yr
Class 4Self-employed6%£12,570–£50,270
Class 4Self-employed2%Above £50,270
Class 2 (voluntary)Self-employed£3.45/wkBuilds State Pension
What Does NI Pay For?
- State Pension — you need 35 qualifying years for the full new State Pension of £11,502/year
- Statutory Maternity, Paternity and Sick Pay
- Contribution-based Jobseeker's Allowance
- A proportion of NHS funding
Key Differences From Income Tax
- Stops at State Pension age (currently 66) — you no longer pay employee NI once you reach pension age, even if still working
- Non-cumulative — unlike PAYE, NI is calculated fresh each pay period with no year-to-date adjustment
- Not devolved — NI rates are the same across all four UK nations; only Income Tax is devolved to Scotland and Wales
NI on £35,000 salary
£1,794/yr
£150/month · 8% of £22,430 above threshold
NI on £60,000 salary
£3,210/yr
£268/month · 8% up to £50,270, 2% above
Calculate your take-home pay
Use PayKeep's free calculator for your exact figures — pension, student loan, tax code and all.
→ Calculate Your NI