James Mitchell · Senior Tax Advisor (CTA, ATT) · Reviewed
April 2025 Changes
National Insurance Rates UK 2026
Complete reference to UK National Insurance contributions for employees, employers, and the self-employed for 2025/26 — including the April 2025 employer rate increase, Employment Allowance, and interactive NI calculator.
8%
Employee NI rate (£12,570–£50,270)
15%
Employer NI rate from April 2025
£10,500
Employment Allowance 2025/26
National Insurance Calculator 2025/26
Annual Salary / Profits—
NI at main rate—
NI at higher rate (above UEL)—
Total Employee / Class 4 NI—
Employer NI (gross)—
Less: Employment Allowance—
Employer NI Net—
Monthly NI (employee)—
Class 1 — Employee National Insurance 2025/26
Employee NI Thresholds and Rates
| Threshold | Annual | Weekly | Rate |
|---|---|---|---|
| Lower Earnings Limit (LEL) | £6,396 | £123 | No NI, but NI credits earned |
| Primary Threshold (PT) | £12,570 | £242 | NI contributions begin above this |
| £12,570 – £50,270 | — | £242–£967 | 8% |
| Upper Earnings Limit (UEL) | £50,270 | £967 | Rate drops after this point |
| Above £50,270 | — | Above £967 | 2% |
No NI is payable on earnings below £12,570, but employees earn NI credits (qualifying years for State Pension) on earnings between the LEL (£6,396) and the Primary Threshold (£12,570).
Class 1 Secondary — Employer National Insurance 2025/26
Major April 2025 Changes: The employer NI rate increased from 13.8% to 15%, and the Secondary Threshold dropped from £9,100/year to £5,000/year. The Employment Allowance increased from £5,000 to £10,500. These are the most significant employer NI changes in many years.
Employer NI Thresholds and Rates
| Threshold | Annual | Weekly | Rate |
|---|---|---|---|
| Secondary Threshold (new from Apr 2025) CHANGED | £5,000 | £96.15 | NI starts above this |
| Employer NI rate (new from Apr 2025) CHANGED | On all earnings above £5,000 | 15% | |
| Employment Allowance (new from Apr 2025) CHANGED | Per employer, per year | £10,500 | |
Previous vs New Employer NI Rates
| Item | Before Apr 2025 | From Apr 2025 |
|---|---|---|
| Secondary Threshold | £9,100/year | £5,000/year |
| Employer NI Rate | 13.8% | 15% |
| Employment Allowance | £5,000 | £10,500 |
Employment Allowance — Who Qualifies?
- Most employers with a Class 1 NI bill
- Charities and community amateur sports clubs
- Employers of care or support workers
- Not eligible: director-only companies where director is sole employee
- Not eligible: public authorities (subject to conditions)
Self-Employed NI — Class 2 and Class 4
Self-Employed NI Rates 2025/26
| NI Class | Threshold | Rate 2025/26 | Notes |
|---|---|---|---|
| Class 2 | Profits ≥ £12,570/year (SPT) | £3.45/week | Effectively abolished from Apr 2024 — included in SA calculation automatically for those above SPT |
| Class 2 (voluntary) | Profits below £12,570 | £3.45/week | Pay voluntarily to protect State Pension entitlement |
| Class 4 — main rate | £12,570 – £50,270 | 9% | Collected via Self-Assessment |
| Class 4 — upper rate | Above £50,270 | 2% | Collected via Self-Assessment |
Class 3 Voluntary & State Pension
Class 3 Voluntary NI
| Item | 2025/26 |
|---|---|
| Weekly rate | £17.45 |
| Annual cost | £907.40 |
| Purpose | Fill NI record gaps |
| Lookback period | Generally 6 years |
State Pension Requirements
| Item | 2025/26 |
|---|---|
| Full new State Pension | £230.25/week |
| Annual equivalent | £11,973.00 |
| Years for full pension | 35 qualifying years |
| Minimum years for any pension | 10 qualifying years |
Impact of Employer NI Rise on Employees: While the employer NI increase does not directly reduce take-home pay, businesses facing higher employment costs may respond by moderating salary increases, reducing hours, limiting recruitment, or — in some sectors — passing costs to consumers. Employees in pay negotiations in 2025/26 should be aware that employer NI now costs significantly more per employee.
Frequently Asked Questions
What are the employee National Insurance rates for 2025/26?
Employees pay 8% NI on earnings between the Primary Threshold (£12,570/year or £242/week) and the Upper Earnings Limit (£50,270/year or £967/week). Above the UEL, the rate drops to 2%. No NI is payable on earnings below £12,570, but employees still earn NI credits (and therefore qualifying years for the State Pension) on earnings between the Lower Earnings Limit of £6,396 and the Primary Threshold.
What is the employer NI rate for 2025/26?
From April 2025, employers pay National Insurance at 15% on employee earnings above the Secondary Threshold of £5,000 per year (£96.15 per week). This represents a significant change from the previous rate of 13.8% and a lowering of the threshold from £9,100. The net cost of employment has risen substantially for most employers, particularly those with large lower-paid workforces.
What is the Employment Allowance in 2025/26?
The Employment Allowance rose from £5,000 to £10,500 from April 2025. Eligible employers can deduct this amount from their total Class 1 Secondary (employer) NI bill per tax year. This partially offsets the impact of the employer NI rate increase for smaller businesses. The allowance is claimed via payroll software and Real Time Information (RTI) submissions. Companies where the sole director is the only employee do not qualify.
How much NI do self-employed people pay?
Self-employed individuals with annual profits above £12,570 pay Class 4 NI at 6% on profits between £12,570 and £50,270, and 2% on profits above £50,270. From April 2024, Class 2 NI was effectively abolished for those above the Small Profits Threshold — the entitlement to NI credits is now built into Class 4 contributions, and the equivalent amount is included automatically in your self-assessment tax calculation.
How many NI years do I need for the full State Pension?
You need 35 qualifying National Insurance years to receive the full new State Pension, which was £230.25 per week (£11,973.00 per year) in 2025/26. You need at least 10 qualifying years to receive any State Pension at all. Qualifying years can come from employment, self-employment, or voluntary Class 3 contributions. You can check your NI record and State Pension forecast via the government's Check Your State Pension service on Gov.uk.
What is Class 3 voluntary National Insurance?
Class 3 NI contributions allow individuals to voluntarily fill gaps in their NI record to protect or boost their State Pension entitlement. The 2025/26 rate is £17.75 per week (£923.00 per year). You can typically fill gaps from the previous 6 tax years, and in some cases back to 2006 (this extended window was offered for a limited period). Given the £230.25 per week State Pension, filling gaps is often good value — but always check your State Pension forecast first using the Government Gateway.
Does the employer NI increase affect employees' take-home pay?
Not directly. Employer NI is a tax paid by the employer on top of wages, not deducted from employee pay. However, the increase means the total cost of employing someone is higher. Many economists argue this can indirectly suppress wage growth, as pay budgets are effectively reduced by the extra NI cost. Sectors with large numbers of part-time or lower-paid workers (retail, hospitality, social care) have been particularly vocal about the impact of both the higher rate and the lowered Secondary Threshold.
Related Calculators & Guides
How National Insurance Rates UK 2026: All Classes Works
This calculator estimates your National Insurance contributions using current 2025/26 HMRC rates. National Insurance (NI) is a payroll tax that funds the State Pension, NHS, and benefits system. Both employees and employers pay NI, though at different rates and thresholds.
Your NI contributions build entitlement to the State Pension and certain benefits. You need 35 qualifying years of contributions for the full new State Pension (£230.25 per week in 2025/26) and at least 10 qualifying years for any pension at all.
Key Information for 2025/26
Employee NI (Class 1): 8% on earnings between £12,570 and £50,270, then 2% above £50,270. Employer NI: 15% on earnings above £5,000 per employee (threshold reduced from £9,100 in April 2025). Self-employed NI: Class 2 at £3.45/week (if profits exceed £12,570) and Class 4 at 6% between £12,570 and £50,270, then 2% above.
Example Calculation
An employee earning £40,000: NI = (£40,000 - £12,570) x 8% = £2,194 per year (£183 per month). Their employer pays (£40,000 - £5,000) x 15% = £5,250 in employer NI. The total NI cost on this salary is £7,444 combined.
Source: Based on official HMRC 2025/26 NI rates. Last updated March 2026.
Official Sources
Data verified against official UK government sources. Last checked April 2026.