Understanding National Insurance Classes
| Class |
Who Pays |
Rate (2025/26) |
What It Covers |
| Class 1 |
Employees |
8% / 2% |
State Pension, JSA, MA, SSP |
| Class 1 (Employer) |
Employers |
13.8% |
NHS funding, social security |
| Class 2 |
Self-employed |
£3.45/week |
State Pension, MA, BSP |
| Class 3 |
Voluntary |
£17.45/week |
Fill gaps for State Pension |
| Class 4 |
Self-employed |
6% / 2% |
No benefits - just tax |
NI and Your State Pension
Your State Pension depends on your National Insurance record:
- 35 qualifying years: Full new State Pension (£221.20/week in 2025/26)
- 10+ qualifying years: Some State Pension
- Under 10 years: No State Pension entitlement
You can check your NI record and State Pension forecast on the GOV.UK website.
Frequently Asked Questions
What is the National Insurance rate for 2025/26?
For 2025/26, employee Class 1 NI is 8% on earnings between £12,570 and £50,270, then 2% above £50,270. Self-employed Class 4 NI is 6% on profits between £12,570 and £50,270, then 2% above. Employer NI is 13.8% on earnings above £9,100. Class 2 NI for self-employed is £3.45/week.
How much National Insurance do I pay?
The amount depends on your earnings and employment status. Employees pay Class 1 NI: 8% on earnings between £12,570-£50,270 per year, and 2% on earnings above £50,270. For example, on a £35,000 salary, you'd pay approximately £1,794 in NI per year (£149.50/month).
What are the different NI classes?
Class 1: Paid by employees and employers on wages. Class 1A/1B: Paid by employers on benefits and expenses. Class 2: Flat rate for self-employed (£3.45/week). Class 3: Voluntary contributions to fill gaps (£17.45/week). Class 4: Paid by self-employed on profits (6% then 2%).
What is the NI threshold 2025/26?
For 2025/26, the Primary Threshold (when employees start paying NI) is £12,570 per year (£242/week). The Upper Earnings Limit (when the rate drops to 2%) is £50,270 per year. The Secondary Threshold for employers is £9,100 per year.
Do I pay National Insurance after State Pension age?
No, employees don't pay National Insurance once they reach State Pension age (currently 66). However, if you're self-employed, you stop paying Class 2 and Class 4 NI from State Pension age. Your employer still pays their share of NI on your earnings.
How does NI affect my State Pension?
You need 35 qualifying years of NI contributions for a full State Pension (£221.20/week in 2025/26). You need at least 10 qualifying years to get any State Pension. If you have gaps, you can pay voluntary Class 3 contributions (£17.45/week) to fill them.