UK National Insurance 2026/27 — 8% Employee, 15% Employer
Reviewed by Alex Morgan · Updated April 2026 · Three rate cuts to Class 1 since 2022, employer rate raised
2026/27 NI rate card
| Class | Who | Rate / threshold | Notes |
|---|---|---|---|
| Class 1 Primary | Employees | 8% (£12,571 – £50,270) / 2% above | Cut from 12% → 10% Jan 2024 → 8% Apr 2024 |
| Class 1 Secondary | Employers | 15% above £5,000 (no upper limit) | Raised from 13.8% Apr 2025; threshold cut from £9,100 |
| Class 1A | Employers — benefits in kind | 15% on cash equivalent of BIK | Company car, private healthcare, etc. |
| Class 1B | Employers — PAYE Settlement Agreements | 15% | Bulk-settled minor benefits |
| Class 2 | Self-employed (voluntary now) | £3.45/week voluntary | Effectively abolished Apr 2024 (auto credit if profits ≥ £6,845) |
| Class 3 | Voluntary top-up | £17.45/week | Fill state pension gaps |
| Class 4 | Self-employed | 6% (£12,571 – £50,270) / 2% above | Cut from 9% → 8% Apr 2024 → 6% Apr 2025 |
The April 2025 employer NI shift
The biggest UK NI change in over a decade hit on 6 April 2025. The employer (Secondary Class 1) rate jumped from 13.8% to 15%, AND the Secondary Threshold (the earnings level at which employer NI starts) was cut from £9,100 to £5,000. Combined effect:
Employer cost impact — £35,000 salary
- Pre-April-2025 employer NI: 13.8% × (£35,000 − £9,100) = £3,574/year
- Post-April-2025 employer NI: 15% × (£35,000 − £5,000) = £4,500/year
- Employer cost increase: +£926/year per £35k employee (+25.9%)
For a 100-employee firm at average £35k: +£92,600/year in payroll cost. Treasury forecasts the change raises ~£25 billion/year — funding NHS and adult social care without raising employee taxes.
The Employment Allowance was raised from £5,000 to £10,500 in the same Budget to soften the impact on small businesses. Eligible employers (those with employer NI bills under £100k in the previous year, with some restrictions) can claim £10,500 off their employer NI bill — meaning the smallest employers may end up paying nothing in employer NI at all.
Take-home maths — the 8% employee rate
| Salary | Employee NI 2026/27 | Employee NI 2023/24 (12%) | Saving from cuts |
|---|---|---|---|
| £20,000 | £595 | £892 | £297 |
| £35,000 | £1,795 | £2,692 | £897 |
| £50,000 | £2,994 | £4,492 | £1,498 |
| £75,000 | £3,512 | £5,010 | £1,498 |
| £100,000 | £4,012 | £5,510 | £1,498 |
The 4-percentage-point cut from 12% to 8% delivers the biggest employee NI saving since 1979 — but the benefit is capped at £1,498/year for anyone above the Upper Earnings Limit (£50,270). Above the UEL, you only pay 2% NI, so further income earns zero additional benefit from the cuts.
Self-employed — Class 2 effectively abolished, Class 4 cut
Self-employed UK workers got two major changes in April 2024:
- Class 2 effectively abolished — for self-employed with profits above the £6,845 small profits threshold, Class 2 (£3.45/week = £179/year) is no longer charged. Qualifying-year credit for state pension is awarded automatically.
- Class 2 remains voluntary at £3.45/week for self-employed wanting to top up qualifying years (e.g. profits below £6,845 or non-trading periods).
- Class 4 cut from 9% to 8% in April 2024, then to 6% in April 2025 — a 3-percentage-point cut delivering up to £1,131/year saving on profits at the Upper Profits Limit.
Combined with the abolition of Class 2, a self-employed person with £40k profit pays roughly £1,640 Class 4 in 2026/27 vs £2,640 Class 2+4 in 2023/24 — a £1,000 saving per year. The reforms make the self-employed/PAYE NI gap smaller but it remains: an employed person on £40k pays £2,194 employee NI while a self-employed equivalent pays £1,640 Class 4.
Qualifying years and the new State Pension
Each tax year you earn above the Lower Earnings Limit (£6,500 / £125 weekly), or claim certain credits, counts as a "qualifying year" toward the new State Pension. To get the full new State Pension (£230.30/week for 2026/27, see our State Pension guide):
- 35 qualifying years required for the full amount.
- 10 qualifying years minimum to receive any new State Pension at all.
- Years 11 to 34 each add 1/35 of the full pension — about £6.58/week per qualifying year in 2026/27.
- Crediting routes: NI contributions through earnings, Carer's Credit, Child Benefit (kids under 12), Jobseeker's Allowance, ESA, Universal Credit, ICB credits.
- Voluntary Class 3 contributions: £17.45/week × 52 = £907 to buy a missing year — recouped in pension after about 3 years.
Check your NI record at gov.uk → "Check your State Pension." You can buy back gaps from the past 6 tax years (extended to 17 years for 2006/07–2017/18 gaps until 5 April 2025; that special window has now closed for most people). Voluntary contributions are usually one of the best-value financial decisions a near-retirement adult can make.
Pair this with
- → UK Personal Allowance 2026/27 — the income tax counterpart
- → UK State Pension 2026/27 — what your NI contributions buy
- → UK Self Assessment 2026/27
- → UK salary sacrifice 2026/27 — how to save NI via pension
- → UK IR35 2026 explained
- → UK Take-Home Pay Calculator
- → UK Statutory Rates 2026/27 (open dataset)