How Is National Insurance Calculated in the UK?
Updated June 2026 · 6 min read · Free calculator inside
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National Insurance (NI) is a deduction from your pay that builds up your entitlement to the State Pension and certain benefits. Most employees pay Class 1 NI, taken automatically through PAYE. This guide explains how it is worked out for 2026/27, what the thresholds and rates are, and how to estimate your own monthly deduction.
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Open the National Insurance Calculator →National Insurance is banded, like income tax
You pay nothing on earnings below the primary threshold of £12,570 a year. Between £12,570 and the upper earnings limit of £50,270 you pay the main rate of 8%. On anything above £50,270 you pay 2%.
Like income tax, this is sliced: a higher earner pays 8% on the middle band and only 2% on the part above £50,270 — not 8% on everything.
Employee National Insurance rates (2026/27)
| Annual earnings | Employee NI rate |
|---|---|
| Up to £12,570 | 0% |
| £12,570 – £50,270 | 8% |
| Above £50,270 | 2% |
Class 1 (Category A) employee rates. NI is normally calculated per pay period, not annually.
Worked example: a £35,000 salary
- Earnings below £12,570 → £0 NI.
- Earnings between £12,570 and £35,000 = £22,430, taxed at 8% = about £1,794 per year.
- That is roughly £150 a month in National Insurance.
What your employer pays on top
Separately from your own deduction, your employer pays Class 1 NI on your earnings above the secondary threshold of £5,000 at a rate of 15% for 2026/27. This is an employment cost to them and does not come out of your take-home pay, but it is worth knowing about when negotiating salary or working out the true cost of hiring.
National Insurance vs income tax
NI and income tax are separate deductions with different thresholds, so your payslip shows both. Income tax uses the £12,570 personal allowance and 20% / 40% / 45% bands, while NI uses the 8% / 2% structure above. Your take-home pay is your salary minus both.
Frequently Asked Questions
How much National Insurance do I pay on £30,000?
On a £30,000 salary you pay 8% on earnings between £12,570 and £30,000 — about £1,394 a year, or roughly £116 a month, for 2026/27.
At what salary do you start paying National Insurance?
You start paying employee National Insurance once your earnings exceed the primary threshold of £12,570 a year (calculated per pay period in practice).
Do I pay National Insurance after State Pension age?
Generally no. Employees stop paying Class 1 NI once they reach State Pension age, even if they keep working, though their employer may still pay employer NI.
Does National Insurance count towards my pension?
Yes. Your NI record determines your entitlement to the State Pension. You typically need around 35 qualifying years for the full new State Pension and at least 10 to get any.
See your exact National Insurance for 2026/27
Skip the maths — get an instant, up-to-date figure with our free calculator.
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⚠️ Disclaimer: This guide is for general information only and does not constitute financial, tax, or legal advice. Rates and thresholds can change — always check the latest figures on GOV.UK and consult a qualified professional before making decisions.