For 2026/27, employees pay National Insurance at 8% on earnings between £12,570 and £50,270 a year (£242 to £967 a week) and 2% above that. Employers pay 15% on earnings above £5,000 a year (£96 a week). Self-employed people pay Class 4 at 6% on profits between £12,570 and £50,270 and 2% above. None of the main percentages has changed from 2025/26. The lower earnings limit has risen to £129 a week, and the Class 2 and Class 3 weekly rates have gone up.
2026/27 National Insurance rates at a glance
| Class | Who pays | 2026/27 rate |
|---|---|---|
| Class 1 primary | Employees | 8% from £242 to £967 a week; 2% above £967 |
| Class 1 secondary | Employers | 15% above £96 a week |
| Class 1A | Employers, on taxable benefits | 15% |
| Class 1B | Employers, on PAYE Settlement Agreements | 15% |
| Class 2 | Self-employed (voluntary below £7,105 profits) | £3.65 a week |
| Class 3 | Voluntary contributions | £18.40 a week |
| Class 4 | Self-employed | 6% on profits £12,570 to £50,270; 2% above |
Figures are from HMRC's rates and allowances tables for National Insurance and its employer rates page for 2026 to 2027.
Class 1 thresholds for employees and employers
| Threshold | Weekly | Monthly | Annual |
|---|---|---|---|
| Lower earnings limit (LEL) | £129 | £559 | £6,708 |
| Primary threshold (employee NI starts) | £242 | £1,048 | £12,570 |
| Secondary threshold (employer NI starts) | £96 | £417 | £5,000 |
| Freeport and Investment Zone upper secondary threshold | £481 | £2,083 | £25,000 |
| Upper earnings limit and other upper secondary thresholds | £967 | £4,189 | £50,270 |
Earnings between the LEL and the primary threshold attract 0% employee NI, but they still count towards the employee's National Insurance record for State Pension and benefits. In 2025/26 the LEL was £125 a week. The other thresholds above are unchanged from 2025/26.
How much is National Insurance? Employee rates by category letter
The 8% and 2% rates apply to category A, which covers most employees. Other category letters change the percentage:
- A, F, H, M, N, V. 0% up to the primary threshold, 8% to the upper earnings limit, 2% above. This covers the standard rate, Freeport, apprentices under 25, under-21s, Investment Zone and veterans;
- B, E, I. The married women's and widows' reduced rate of 1.85% between the primary threshold and upper earnings limit, then 2%;
- J, D, L, Z. Deferment: 0% up to the primary threshold and 2% on all earnings above it, for employees who can defer because they already pay NI in another job;
- C, K, S. No employee NI, for employees over State Pension age. Employer NI is still due.
HMRC's own example: a category A employee earning £1,000 in a week pays nothing on the first £242, 8% (£58) on £242.01 to £967 and 2% (£0.66) above £967. The total is £58.66 for the week.
Employer National Insurance: 15% and the reliefs
The employer rate has been 15% since 6 April 2025, up from 13.8%. The secondary threshold dropped at the same time to £5,000 a year. Employer NI is due on earnings above that threshold with no upper limit. There are four main exceptions:
- Under-21s (M), apprentices under 25 (H) and veterans (V). 0% employer NI up to £967 a week (£50,270 a year), then 15%;
- Freeport and Investment Zone employees. 0% up to £481 a week (£25,000 a year), then 15%;
- Employment Allowance. Eligible employers can reduce their annual employer Class 1 bill by up to £10,500. Since 2025/26 there is no upper limit on the previous year's liability for eligibility. However, a company with only one director cannot claim if that director is the only employee liable for employer NI. Our Employment Allowance guide covers the conditions;
- Class 1A and 1B. Benefits in kind and PAYE Settlement Agreements are charged at 15% too. Class 1A on termination awards applies only to the amount above £30,000.
As an illustration, not an HMRC figure, a category A employee on a steady £30,000 salary pays (£30,000 − £12,570) × 8% = £1,394.40 a year. The employer pays (£30,000 − £5,000) × 15% = £3,750 before any Employment Allowance. Employee NI is worked out pay period by pay period, so irregular pay will give a different total. Directors are the exception, because they use an annual earnings period.
Self-employed rates: Class 2 and Class 4
Class 4 is payable at 6% on profits between the lower profits limit of £12,570 and the upper profits limit of £50,270, and 2% above. Class 2 is no longer a compulsory charge for most sole traders. If profits are £7,105 or more (the small profits threshold), Class 2 is treated as paid, which protects the National Insurance record without any cost. Below that level, you can choose to pay voluntary Class 2 at £3.65 a week. Both classes are normally collected through Self Assessment.
Voluntary Class 3 and filling gaps
Class 3 costs £18.40 a week for 2026/27, up from £17.75. You can generally pay for the past 6 years, with a deadline of 5 April each year. For example, gaps in 2025/26 can be filled until 5 April 2032. From 6 April 2026 the rules for periods spent abroad have tightened. Voluntary Class 2 can no longer be paid for time abroad, and Class 3 for periods abroad now needs 10 years of UK residence or contributions instead of 3. Check your State Pension forecast before paying, because voluntary contributions do not always increase the pension.
What changed for 2026/27, and what did not
- Unchanged. The 8%, 2%, 15% and 6% rates, the £12,570 primary threshold and lower profits limit, the £50,270 upper limits and the £5,000 secondary threshold;
- Increased. The LEL (from £125 to £129 a week), the small profits threshold (from £6,845 to £7,105), Class 2 (from £3.50 to £3.65) and Class 3 (from £17.75 to £18.40).
The primary sources are HMRC's rates and allowances for National Insurance contributions and rates and thresholds for employers 2026 to 2027. For how these rates interact with pay and bonuses, see how bonuses are taxed.
Acumon checks category letters, director NI and Employment Allowance claims as part of its PAYE services. It advises on the overall cost of employing staff through its employment tax work. If your payroll has eligible under-21s, apprentices or veterans on category A, you may be paying employer NI you do not owe.