National Insurance Guide: Rates, Thresholds & Categories
What Is National Insurance?
National Insurance (NI) is a tax on earnings and self-employed profits that funds the NHS, state pension, and other benefits. Both employees and employers pay NI contributions. Your NI record also determines your eligibility for the state pension and certain benefits.
Employee NI Rates (2025/26)
- Below £12,570: 0% (Primary Threshold)
- £12,570 to £50,270: 8% (main rate)
- Above £50,270: 2% (additional rate)
Employers pay 15% on earnings above £5,000 (Secondary Threshold).
Self-Employed NI (Class 4)
- Below £12,570: 0%
- £12,570 to £50,270: 6%
- Above £50,270: 2%
Self-employed workers also pay Class 2 NI of £3.45 per week if profits exceed £12,570.
NI and Your State Pension
You need 35 qualifying years of NI contributions to get the full new state pension (currently £221.20 per week). You need at least 10 qualifying years to get any state pension at all. You can check your NI record and fill gaps by making voluntary contributions.
How NI Affects Take-Home Pay
NI is deducted alongside income tax through PAYE. For a £35,000 salary, you'd pay approximately £1,794 in employee NI for 2025/26. Use our salary after tax calculator to see your exact deductions.
Related Calculators
Frequently Asked Questions
How much National Insurance do I pay on my salary?
Employees pay 8% on earnings between £12,570 and £50,270, then 2% on earnings above that. On a £35,000 salary, you'd pay approximately £1,794 in NI for 2025/26.
Does National Insurance affect my state pension?
Yes. You need 35 qualifying years of NI contributions for the full state pension (£221.20/week) and at least 10 years for any pension at all.