💑 UK National Insurance Calculator

National Insurance contributions (NICs) are a tax on earnings paid by employees, employers and the self-employed in the United Kingdom. They are collected by HM Revenue and Customs (HMRC) and the revenue funds the state pension, statutory sick pay, maternity pay and other social security benefits. Unlike income tax, NICs are calculated on a weekly or monthly basis depending on your earnings period, but for annual planning purposes you can treat the thresholds as annual amounts. To qualify for the state pension you need at least 10 qualifying years of NICs, and 35 years for the full new state pension.

For the 2026/27 tax year, Class 1 employee NICs are charged at 8% on earnings between the Primary Threshold of £12,570 and £50,270, and at 2% on all earnings above £50,270. There is no employee NIC on earnings below the Primary Threshold. These rates were reduced significantly from earlier years — the main rate was 12% in 2022 and was cut to 10% in January 2024, then to 8% in April 2024. The employee NIC rates shown here reflect the most recent changes announced by the Chancellor.

Employer NICs are charged at 15% on earnings above the Secondary Threshold of £5,000 per year. The employer rate was increased from 13.8% to 15% from April 2025, and the Secondary Threshold was lowered from £9,100 to £5,000. Employers can claim the Employment Allowance, which offsets up to £10,500 of their employer NIC bill per tax year, available to businesses and charities with employer NIC liabilities below £100,000. This makes employer NIC effectively zero for many small employers.

It is important to understand the difference between the employee and employer perspective. The employee NIC is deducted directly from your gross pay and appears on your payslip. The employer NIC is paid on top of your salary by your employer and never appears on your payslip — it represents the true additional cost of employing you. For budgeting and salary negotiations, knowing both figures helps you understand the full cost of employment and compare total compensation packages. This calculator is for informational purposes only and does not constitute tax advice.

The calculator applies the 2026/27 NIC rates to your gross annual salary. Employee NIC uses two bands: 8% on earnings between £12,570 and £50,270, and 2% on earnings above £50,270. Employer NIC is charged at 15% on earnings above £5,000. You can choose to view employee only, employer only, or both.

Class 1 Employee NIC Rates 2026/27

Employer NIC Rates 2026/27

Employers can claim the Employment Allowance of up to £10,500 per year, which effectively eliminates employer NIC for many small businesses.

1. Enter your gross annual salary before any deductions.
2. Select whether you want to see employee NIC, employer NIC, or both.
3. Click the Calculate button to see the breakdown.
4. Review the employee NIC breakdown by band and the employer NIC amount.
5. Compare the total cost of employment with your gross salary.

What is the Primary Threshold for 2026/27?

The Primary Threshold is \u00A312,570 per year for 2026/27. You do not pay any Class 1 employee NIC on earnings below this amount. The threshold is aligned with the income tax Personal Allowance.

What is the Secondary Threshold for employer NIC?

The Secondary Threshold is \u00A35,000 per year for 2026/27. Employers pay 15% NIC on all earnings above this amount. It was lowered from \u00A39,100 to \u00A35,000 from April 2025.

What is the Employment Allowance?

The Employment Allowance lets eligible employers offset up to \u00A310,500 of their employer NIC bill per tax year. It is available to businesses and charities with employer NIC liabilities below \u00A3100,000 in the previous tax year. This effectively eliminates employer NIC for many small employers.

How much NIC do I pay on earnings above \u00A350,270?

You pay 2% on all earnings above \u00A350,270. Combined with the 8% rate on the band between \u00A312,570 and \u00A350,270, someone earning \u00A3100,000 pays \u00A34,010.60 in employee NIC for the 2026/27 tax year.

Are NICs the same as income tax?

No. National Insurance and income tax are separate taxes collected by HMRC. NICs fund the state pension and certain social security benefits, while income tax funds general government spending. Both are deducted from your payslip, but they use different rates and thresholds. See our UK Income Tax Calculator for the income tax portion.

This tool is for informational purposes only and does not constitute financial advice. Consult a qualified financial professional for advice specific to your situation.

When evaluating a job offer, always consider the total cost of employment — your gross salary plus employer NIC — not just the headline salary figure. An employer paying £40,000 faces a total cost of over £42,250 once the 15% employer NIC on earnings above £5,000 is added. Salary sacrifice arrangements for pensions, childcare vouchers, cycle-to-work schemes and electric vehicles can reduce both employee and employer NIC, as the sacrificed salary falls below the NIC thresholds.

If you are self-employed, you pay Class 4 NICs on profits instead of Class 1 NICs. Class 4 rates for 2026/27 are 6% on profits between £12,570 and £50,270, and 2% on profits above £50,270. Self-employed individuals with profits above £6,725 may also pay a flat-rate Class 2 NIC, though this is being phased out. This calculator focuses on Class 1 employee and employer contributions only. Use our take-home pay calculator to see the combined effect of income tax and NICs on your net pay.