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
£221.20/week
Annual equivalent
£11,502.40
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 9% 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 £221.20 per week (£11,502.40 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 £17.45 per week (£907.40 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 £221.20 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.
Mustafa Bilgic (MB) is the founder of UKCalculator.com, specialising in UK payroll, tax, and personal finance tools. All NI rates are sourced from HMRC official guidance and HM Treasury Autumn Budget 2024 documents. Last reviewed: 20 February 2026.