What is National Insurance?
National Insurance is a system of contributions associated with employment and other qualifying earnings in the United Kingdom.
Employees may pay Class 1 National Insurance through payroll, while employers may also have a separate Class 1 contribution liability.
National Insurance is distinct from Income Tax. Both can affect an employee's take-home pay, but they have different thresholds and calculation rules.
Employee National Insurance rates for 2026/27
This calculator uses the standard Class 1 employee National Insurance rates for category A, expressed as annualised thresholds.
Annualised earnings threshold before standard employee NI becomes payable.
Applied to qualifying earnings above the Primary Threshold, up to the Upper Earnings Limit.
Applied to earnings above the Upper Earnings Limit.
| Annual earnings band | Employee NI rate |
|---|---|
| Up to £12,570 | 0% |
| £12,570 to £50,270 | 8% on earnings within this band |
| Above £50,270 | 2% on earnings above this level |
The £50,270 Upper Earnings Limit is the point above which the standard employee NI rate reduces from 8% to 2%. It is not a limit on total employee earnings.
How to calculate Employee National Insurance
Under a simplified annual calculation, earnings are divided into contribution bands.
8% × min(max(Earnings − £12,570, 0), £37,700) + 2% × max(Earnings − £50,270, 0)
The £37,700 figure represents the difference between the Upper Earnings Limit and Primary Threshold.
This annualised formula is suitable for an illustrative estimate. Actual employee NI normally depends on earnings in each contribution period.
National Insurance worked examples
Example 1: £20,000 annual salary
- Gross annual earnings: £20,000
- Earnings above Primary Threshold: £7,430
- Main-rate NI: £7,430 × 8%
Estimated annual NI: £594.40
Example 2: £35,000 annual salary
- Gross annual earnings: £35,000
- Earnings above Primary Threshold: £22,430
- Main-rate NI: £22,430 × 8%
Estimated annual NI: £1,794.40
Example 3: £50,000 annual salary
- Gross annual earnings: £50,000
- Earnings above Primary Threshold: £37,430
- Main-rate NI: £37,430 × 8%
Estimated annual NI: £2,994.40
Example 4: £60,000 annual salary
- Gross annual earnings: £60,000
- Main-rate band: £37,700 × 8% = £3,016
- Upper-rate band: £9,730 × 2% = £194.60
Estimated annual NI: £3,210.60
Example 5: £100,000 annual salary
- Gross annual earnings: £100,000
- Main-rate band: £37,700 × 8% = £3,016
- Upper-rate band: £49,730 × 2% = £994.60
Estimated annual NI: £4,010.60
Is National Insurance the same as Income Tax?
No. National Insurance and Income Tax are separate charges, although both may be deducted from employee earnings through payroll.
| Feature | National Insurance | Income Tax |
|---|---|---|
| Primary purpose | National Insurance contribution system | Tax on taxable income |
| Calculation | Contribution thresholds and category rules | Tax bands, allowances and tax code rules |
| Scottish variation | Class 1 NI rates generally apply UK-wide | Scottish non-savings, non-dividend Income Tax bands differ |
Employee National Insurance vs Employer National Insurance
Employee Class 1 National Insurance is generally deducted from qualifying wages. Employer Class 1 National Insurance is generally paid by the employer in addition to wages.
The two contribution types have different rates and thresholds. To estimate the employer's cost, use the Employer National Insurance Calculator 2026/27 .
National Insurance category letters
Payroll systems use National Insurance category letters to identify the applicable contribution treatment for an employee.
Category A is commonly used for employees under standard contribution rules. Other categories can have different rates or employer contribution treatment.
This calculator does not model every category letter.
Why your payslip NI may differ from this calculator
Employee National Insurance is normally calculated using earnings within each pay period, rather than applying annual thresholds to the full year's earnings.
Differences can arise because of:
- Weekly, fortnightly or monthly pay periods.
- Bonuses, overtime or irregular earnings.
- Alternative National Insurance category letters.
- Director-specific contribution rules.
- Multiple jobs or employments.
- Special payroll arrangements.
- Reaching State Pension age.
Therefore, this calculator should be treated as an annual planning estimate rather than a replacement for payroll software.
How to use the UK National Insurance Calculator
- Enter your annual gross employee earnings.
- Select Calculate.
- Review your estimated employee Class 1 National Insurance.
- Compare the estimate with your payroll deductions.
- Check official guidance if you have a non-standard NI category or irregular earnings.
Official National Insurance guidance
For current contribution rates, categories and payroll requirements, consult HMRC guidance:
- GOV.UK – National Insurance rates and category letters
- GOV.UK – National Insurance overview
- GOV.UK – Running payroll
Frequently asked questions
What is the employee National Insurance rate in 2026/27?
Under standard Class 1 category-A rules, the main rate used here is 8% and the rate above the Upper Earnings Limit is 2%.
What is the National Insurance threshold for 2026/27?
This calculator uses an annualised Primary Threshold of £12,570 and an Upper Earnings Limit of £50,270.
How much National Insurance do I pay on £50,000?
Under the simplified annualised calculation, estimated employee Class 1 NI is £2,994.40.
Do employees pay NI above £50,270?
Yes. Under the standard rules used here, earnings above £50,270 are subject to the 2% rate.
Is National Insurance calculated monthly?
For monthly-paid employees, NI is generally calculated using the relevant monthly earnings period and thresholds.
Do Scottish employees pay different National Insurance?
Standard Class 1 employee National Insurance rules generally apply across the UK. Scottish Income Tax rates can differ, however.
Does National Insurance stop at State Pension age?
Employees generally stop paying Class 1 employee National Insurance when they reach State Pension age, although employer contributions may continue.
Is this an official HMRC calculator?
No. CalculatorsOnline is an independent website and is not affiliated with HMRC or the UK Government.
Related UK salary and payroll calculators
Important: This tool provides a simplified annualised estimate of standard employee Class 1 National Insurance. It does not calculate PAYE Income Tax, employer NI, pension deductions, student loan repayments, director-specific contributions or every alternative NI category.
Maintained by the CalculatorsOnline Editorial Team. Read our editorial and methodology policy .