National Insurance Rates UK
Understanding National Insurance contributions in the UK. Learn about NI thresholds, rates, and how much you'll pay on your earnings.
Key Thresholds 2025/26
You start paying NI when you earn above this amount.
NI rate reduces to 2% on earnings above this amount.
Employee NI Rates (Class 1)
Below Primary Threshold
Earnings up to £12,570/year
No National Insurance contributions on earnings below the Primary Threshold. However, you may still qualify for the State Pension and other benefits.
Main Rate
£12,571 to £50,270/year
The main rate applies to earnings between the Primary Threshold and Upper Earnings Limit. This is deducted automatically from your salary by your employer.
Additional Rate
Above £50,270/year
The reduced rate of 2% applies to all earnings above the Upper Earnings Limit. There is no upper cap on NI contributions.
National Insurance vs Income Tax
Both Income Tax and National Insurance are deducted from your salary, but they work differently:
Income Tax
- Calculated on your total annual income
- Uses tax bands (20%, 40%, 45%)
- Personal Allowance reduces taxable income
- Funds general government spending
National Insurance
- Calculated per pay period (weekly/monthly)
- Uses thresholds (8% main, 2% additional)
- No personal allowance equivalent
- Funds State Pension and benefits