Your Details
Your NI Breakdown
Figures are estimates based on HMRC rates. They do not include Income Tax or other deductions.
How National Insurance Works
National Insurance (NI) is a tax on earnings paid by both employees and employers. As an employee, your contributions are deducted from your wages by your employer through PAYE (Pay As You Earn) before you receive your pay.
Employee NI contributions count towards your entitlement to certain state benefits, including the State Pension, Maternity Allowance, and contribution-based Jobseeker's Allowance.
Class 1 Employee NI (2025/26)
Class 1 NI is the type paid by employees. You only pay NI on earnings above the primary threshold. The rates for 2025/26 are:
- 0% on earnings up to £12,570 (primary threshold)
- 8% on earnings between £12,570 and £50,270 (main rate)
- 2% on earnings above £50,270 (upper rate)
NI Categories Explained
Your NI category letter determines the rates you and your employer pay. Most employees are Category A. Other categories offer reduced rates for specific groups:
- Category A — standard rate for employees aged 21 and over
- Category H — apprentices under 25
- Category M — employees under 21
- Category Z — employees under 21 with deferred NI (zero employee NI)
NI Rates Table 2025/26
| Band | Annual Threshold | Weekly | Employee Rate |
|---|---|---|---|
| Below Primary Threshold | £0 – £12,570 | £0 – £242 | 0% |
| Primary to Upper Earnings Limit | £12,570 – £50,270 | £242 – £967 | 8% |
| Above Upper Earnings Limit | Above £50,270 | Above £967 | 2% |
Source: HMRC — National Insurance rates and categories
Employer National Insurance
Employers also pay National Insurance on their employees' earnings. From April 2025, employer NI is charged at 15% on earnings above the secondary threshold of £5,000 per year.
Employer NI is not deducted from your pay — it is an additional cost borne by the employer on top of your gross salary. However, economists note that employer NI can indirectly affect wages, as it increases the total cost of employing staff.
| Type | Threshold | Rate |
|---|---|---|
| Employer NI (2025/26) | Above £5,000/year | 15% |
| Employment Allowance | — | Up to £10,500 off employer NI bill |
Small businesses can claim the Employment Allowance, which reduces their employer NI bill by up to £10,500 per year.
Worked Examples
Example 1: £25,000 Salary
Example 2: £50,000 Salary
Example 3: £80,000 Salary
Frequently Asked Questions
For 2025/26, employees pay 8% NI on earnings between £12,570 and £50,270 (the primary threshold and upper earnings limit), and 2% on earnings above £50,270. If you earn £35,000, your annual NI is approximately £1,794.
The primary threshold for 2025/26 is £12,570 per year (£242 per week). You do not pay any employee NI on earnings below this amount.
Category A is the standard rate for most employees. Category H applies to apprentices under 25. Category M applies to employees under 21. Category Z applies to employees under 21 who are exempt from employer NI — employees in this category pay zero NI.
No. If your annual earnings are below the primary threshold of £12,570, you do not pay any employee National Insurance contributions. However, you still build up NI credits if you earn above the lower earnings limit (£6,396 for 2025/26).
Employers pay 15% NI on employee earnings above the secondary threshold of £5,000 per year. This is separate from your employee NI and does not reduce your take-home pay.
No. National Insurance and Income Tax are separate deductions. NI funds state benefits like the State Pension, while Income Tax funds general government spending. They have different thresholds and rates, although for 2025/26 the personal allowance and NI primary threshold are both £12,570.