What is the National Insurance rate for employees in 2026/27?

Employee Class 1 NI is 8% on earnings between £12,570 and £50,270, and 2% on earnings above £50,270. There is no NI on earnings below the Primary Threshold of £12,570.

Is National Insurance the same in Scotland?

Yes — National Insurance is not devolved. The same Class 1 rates apply across England, Scotland, Wales and Northern Ireland.

Does salary sacrifice reduce National Insurance?

Yes — salary sacrifice reduces your gross pay before NI is calculated, saving 8% on the sacrificed amount (up to the UEL) or 2% above. This is why salary sacrifice is more NI-efficient than a personal pension contribution.

What is employer National Insurance?

Employers pay Class 1 NI at 15% on employee earnings above £9,100 per year. This is a cost to the employer and does not appear on your payslip, but affects the total cost of employing you.

2026/27 tax year

National Insurance Calculator 2026/27

Calculate employee Class 1 NI, employer NI, and combined Income Tax + NI deductions. Applies across England, Scotland, Wales, and Northern Ireland.

Annual salary (£)

Employee NI

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Employer NI

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Total NI cost

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both combined

Salary—

Below Primary Threshold (£12,570)—

8% band (£12,570–£50,270)—

Employee NI total—

Effective employee NI rate—

Employer NI breakdown

Below Secondary Threshold (£9,100)—

15% band (above £9,100)—

Employer NI—

Total employment cost—

2026/27 National Insurance rates at a glance

Band	Earnings	Employee rate	Employer rate
Below Primary/Secondary Threshold	Up to £12,570 (employee) / £9,100 (employer)	0%	0%
Main / standard rate	£12,570 – £50,270	8%	15%
Upper rate	Above £50,270	2%	15%

Note: employer NI applies from £9,100 (Secondary Threshold), while employee NI applies from £12,570 (Primary Threshold). The rates are identical across England, Scotland, Wales, and Northern Ireland — NI is not devolved.

Related calculators & guides

How National Insurance works

National Insurance (NI) is a separate tax from Income Tax, charged on employment earnings. Employee Class 1 NI funds state benefits including the State Pension, NHS, and other contributory benefits. Employer Class 1 NI is an additional cost on top of your salary that your employer pays directly to HMRC.

Why there are two different thresholds

The Primary Threshold (£12,570) — where employees start paying NI — is aligned with the Income Tax Personal Allowance. The Secondary Threshold (£9,100) — where employers start paying NI — is lower, meaning employers start paying NI on your salary at a lower level than you do.

Salary sacrifice and National Insurance

Unlike personal pension contributions, salary sacrifice reduces your contractual gross salary before NI is calculated. This means you save 8% NI (or 2% above the UEL) on the sacrificed amount — a saving that personal pension contributions do not provide. Employers also save 15% NI on salary-sacrificed amounts.

Self-employed National Insurance

Self-employed people pay Class 4 NI (9% on profits £12,570–£50,270; 2% above) plus a flat-rate Class 2 contribution. They do not pay Class 1 NI. Use the self-employed calculator for the complete picture.

Does NI count toward my State Pension?

Yes — Class 1 NI contributions build qualifying years toward the new State Pension. You need 35 qualifying years for the full new State Pension (£221.20/week for 2024/25). Gaps in your record can be filled voluntarily via Class 3 NI contributions.

Is NI the same in Scotland?

Yes — National Insurance is reserved to Westminster and applies identically across the UK. Scottish Income Tax rates differ, but NI does not change for Scottish taxpayers.

What happens to NI at State Pension age?

You stop paying employee NI once you reach State Pension age (currently 66). Employers continue paying employer NI on your salary regardless of your age.