Estimate employee Class 1 National Insurance contributions for the 2026/27 tax year.
National Insurance contributions (NICs) fund the State Pension and certain benefits. Employees pay Class 1 NICs through PAYE: nothing on the first £12,570 (the primary threshold), 8% on earnings between £12,570 and £50,270 (the upper earnings limit), and 2% on everything above £50,270.
Unlike income tax, NICs do not have a tapering allowance, and they are charged on earnings rather than total taxable income. Your employer also pays employer's NICs (15% above £5,000 from April 2025), which is a cost to them and not deducted from your pay. Your NI record determines your entitlement to the State Pension.