UK National Insurance Calculator
National Insurance is one of the largest deductions from your pay, yet many people don't fully understand how much they contribute or how it's calculated. Unlike Income Tax, NI has its own thresholds, rates, and rules that differ for employees, employers, and the self-employed.
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For 2026/27, significant changes have increased the cost of employment. Employer NI rose from 13.8% to 15%, and the secondary threshold at which employers start paying dropped from £9,100 to £5,000. For the self-employed, Class 2 NI is no longer charged through Self Assessment — profits of £7,105 or more (the small profits threshold) are treated as having paid it, and below that you can pay voluntarily at £3.65 per week to protect your State Pension record. Class 4 is 6% on profits between £12,570 and £50,270, and 2% above.
Enter your salary or self-employment profit below to see exactly how much NI you'll pay, with a full breakdown by band. You can also see what your employer pays on top of your salary – a cost many employees never think about but which significantly affects business decisions about pay and benefits.
Based on 2026/27 tax year rates. Last reviewed: September 2026.
Your Details
See what your employer pays on top of your salary
Based on 2026/27 tax year NI rates. This is an estimate only.
Your National Insurance (Class 1)
Annual Employee NI
£1,794.40
Monthly
£149.53
Weekly
£34.51
NI Breakdown
Employer NI (Class 1)
On earnings above £5,000
Your employer pays this on top of your salary. The true cost to employ you at £35,000.00 is £39,500.00.
What this means for your pay packet
National Insurance is a separate deduction from Income Tax — but it eats into your pay just as hard. Most employees pay 8% on earnings between £12,570 and £50,270 and 2% above that. On a £40,000 salary, that's roughly £2,194 a year going to NI alone, before income tax.
The most powerful way to reduce your NI bill is salary sacrifice into a pension — every £1 sacrificed saves you 8% (basic rate) or 2% (higher rate) of NI on top of the income tax saving. To see your full deductions in one view, run your salary through the Take-Home Pay Calculator.
How National Insurance Works
Employee NI (Class 1)
Employees pay NI through PAYE. You pay 8% on earnings between £12,570 and £50,270, and 2% on anything above. Earnings below the Primary Threshold (£12,570) still count as qualifying years for State Pension if above the Lower Earnings Limit (£6,500).
Employer NI (Class 1)
Since April 2025, employers pay 15% NI on earnings above £5,000 per employee. This is a significant cost on top of salaries. The Employment Allowance (£10,500) reduces employer NI for eligible small businesses.
Self-Employed NI (Class 4)
Self-employed people pay Class 4 NI at 6% on profits between £12,570 and £50,270, and 2% above that. Class 2 NI is no longer charged automatically through Self Assessment, but voluntary contributions (£3.65/week) are available to protect State Pension entitlement.
What NI Funds
National Insurance contributions fund the State Pension, NHS, Jobseeker's Allowance, Employment and Support Allowance, Maternity Allowance, and Bereavement Support Payment. Unlike Income Tax, NI creates an entitlement record linked to your NI number.
Common Misconceptions
- 1.
Thinking NI and Income Tax are the same
While both are deducted from pay, NI has different thresholds, rates, and rules. NI also stops when you reach State Pension age, unlike Income Tax.
- 2.
Forgetting employer NI is a real cost
At 15%, employer NI is a major hidden cost. A £50,000 salary costs your employer around £6,750 in NI alone – money that could otherwise go into your pension or salary.
- 3.
Not using salary sacrifice to save NI
Salary sacrifice pension contributions save both employee NI (8%) and employer NI (15%). Many employers share the employer NI saving with the employee as additional pension contributions.
- 4.
Assuming NI applies to all income
NI only applies to employment earnings and self-employment profits. Dividends, rental income, savings interest, and pension income are all exempt from National Insurance.
2026/27 NI Rates at a Glance
| Category | Threshold | Rate |
|---|---|---|
| Employee (main) | £12,570 – £50,270 | 8% |
| Employee (additional) | Above £50,270 | 2% |
| Employer | Above £5,000 | 15% |
| Self-employed Class 4 (main) | £12,570 – £50,270 | 6% |
| Self-employed Class 4 (additional) | Above £50,270 | 2% |
Frequently Asked Questions
What's Next?
Take-Home Pay Calculator
See your full salary breakdown after tax, NI, pension and student loan.
Calculate nowSalary Sacrifice Calculator
Save on NI by contributing to your pension via salary sacrifice.
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