National Insurance
Calculator

Enter your annual gross salary — this is your total earnings before any deductions. The calculator applies the current HMRC National Insurance thresholds for 2026/27 to work out how much Class 1 NI you owe as an employee. It breaks your earnings into the relevant bands and calculates exactly how much NI falls into each, giving you a precise annual, monthly and weekly figure.

Employee Class 1 NI is charged in two bands. You pay 8% on earnings between the primary threshold (£12,570) and the upper earnings limit (£50,270), then 2% on everything above £50,270. Nothing is charged below the primary threshold. This two-band system means the more you earn, the lower your effective NI rate becomes as the 2% upper band dilutes the overall percentage.

Employer Class 1 NI is a separate charge paid by your employer on top of your salary. Since April 2025, employers pay 15% on all earnings above the secondary threshold of £5,000 per year. Unlike employee NI, there is no upper earnings limit — the 15% rate applies without a cap. This calculator shows your employer's NI cost so you can see the full cost of employment.

Self-employed National Insurance works differently. Class 2 NI was abolished from April 2024. If you are self-employed, you now only pay Class 4 NI on your taxable profits — 6% on profits between £12,571 and £50,270, and 2% on profits above £50,270. Use our self-employed tax calculator to calculate your Class 4 contributions.

How thresholds work: NI thresholds operate like income tax bands — only the portion of earnings within each band is taxed at that band's rate. If you earn £55,000, you do not pay 8% on the whole amount. Instead, £0 to £12,570 is NI-free, £12,571 to £50,270 is taxed at 8%, and £50,271 to £55,000 is taxed at 2%. This marginal system ensures your NI bill increases gradually as your earnings rise, not in sudden jumps.

The employee NI main rate has changed several times in recent years. It was 12% until April 2023, dropped to 10% in January 2024, then to 8% from April 2024. This means employees now keep significantly more of their earnings compared to just two years ago. The table below shows how much NI you pay at each salary level under the current 8% rate versus the old 12% rate.

National Insurance is a dual charge. Both you and your employer pay NI on your earnings, but at different rates and with different thresholds. Employee NI is deducted from your pay (you see it on your payslip). Employer NI is an additional cost on top of your salary that your employer pays directly to HMRC — it does not reduce your take-home pay.

For 2026/27, the key difference is:

On a £35,000 salary, the total NI cost is: £1,794 (employee) + £4,500 (employer) = £6,294 total. Your employer's true cost of employing you is £39,500, even though you only see £35,000 on your contract. This is why employer NI increases (like the April 2025 rise from 13.8% to 15%) often lead businesses to limit pay rises — the hidden cost of employment goes up even if your salary stays flat.

Understanding both sides of NI helps when negotiating salary. A salary sacrifice arrangement (for example, into your pension) reduces both your employee NI and your employer's NI, making it a tax-efficient option for both parties.

National Insurance contributions fund key state benefits including the State Pension, Maternity Allowance, contribution-based Jobseeker's Allowance and Employment and Support Allowance. Unlike income tax, which goes into the general government pot, NI contributions are ring-fenced to support the welfare and pension system. Both employees and employers pay NI, and self-employed workers pay their own classes of contribution. You can use our income tax calculator to see how income tax compares.

Your NI number is a unique reference used by HMRC to track your contributions and tax record. It is in the format AB 12 34 56 C and is issued automatically when you turn 16 if you live in the UK. You can find your NI number on your payslip, P60, a letter from HMRC, or by logging into your personal tax account on GOV.UK. You need your NI number when you start a new job.

Qualifying years for the State Pension: To receive the full new State Pension, you need 35 qualifying years of NI contributions. A qualifying year is one in which you earned above the lower earnings limit (£6,396 for 2026/27) or received NI credits (for example, through claiming certain benefits or being a registered carer). You need at least 10 qualifying years to receive any State Pension at all. Use our pension calculator to estimate your retirement income.

Voluntary contributions: If you have gaps in your NI record, you may be able to make voluntary Class 3 contributions to fill them. This costs £17.45 per week for 2026/27 and can increase your State Pension entitlement. You can usually fill gaps from the previous six tax years. Check your NI record online to see if you have any gaps worth filling. Our salary calculator can help you understand your full deductions.

NI for company directors: Directors of limited companies are classed as employees for NI purposes and pay Class 1 contributions on their salary. However, directors' NI can be calculated on an annual basis rather than per pay period, which means their NI is based on total annual earnings rather than monthly amounts. Many directors pay themselves a salary at or just below the primary threshold (£12,570) and take the rest as dividends, which are not subject to NI. Use our self-employed tax calculator if you are a sole trader rather than a company director.

For a complete picture of your take-home pay after NI, income tax, pension contributions and student loan repayments, try our take-home pay calculator. If you are unsure what your tax code means, our tax code decoder can explain it in plain English.