National Insurance (UK)
Compute employee Class 1 NIC and employer secondary NIC on annual salary, including the total cost to employer.
Data verified · May 2026
What are the National Insurance rates for 2025/26?
Employees pay Class 1 NIC at 8% on earnings between £12,570 and £50,270, then 2% above. Employers pay 15% on earnings above the £5,000 secondary threshold.
Source: HMRC NIC rates (gov.uk/national-insurance-rates-letters); Social Security Contributions and Benefits Act 1992. · updated 2026
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Everything about National Insurance (UK)
📋Overview+
Calculates UK National Insurance for 2025/26: employee Class 1 (8% then 2%) above the Primary Threshold and employer secondary Class 1 (15%) above the Secondary Threshold.
💡 Best practices
- Directors use an annual (cumulative) earnings period.
- The Employment Allowance can offset employer NIC for eligible businesses.
🔢 Concrete example
On a £40,000 salary (2025/26): employee Class 1 NIC is 8% on earnings above £12,570 = £2,194.40; employer secondary NIC is 15% above £5,000 = £5,250, for a total cost to employer of £45,250.
📖User guide+
How to use this calculator
- 1
Enter gross annual salary.
- 2
Indicate whether to include employer NIC.
- 3
Read employee NIC, employer NIC and total cost to employer.
📚Glossary+
- Primary Threshold
- £12,570/year — employee NIC starts above this level.
- Secondary Threshold
- £5,000/year (2025/26) — employer NIC starts above this level.
ℹ️Sources & updates+
Last data update
May 21, 2026
Sources and references
HMRC NIC rates (gov.uk/national-insurance-rates-letters); Social Security Contributions and Benefits Act 1992.
The data in this calculator is updated regularly to reflect the latest official rates. When in doubt, consult the official sources listed above.
FAQ — National Insurance (UK)
What are the National Insurance rates for 2025/26?+
Employees pay Class 1 NIC at 8% on earnings between £12,570 and £50,270, then 2% above. Employers pay 15% on earnings above the £5,000 secondary threshold.
At what salary do I start paying National Insurance?+
Employee NIC starts above the Primary Threshold of £12,570 a year. Employer secondary NIC starts above the Secondary Threshold of £5,000 a year.
What is the Employment Allowance?+
Eligible employers can reduce their annual employer (secondary) NIC bill through the Employment Allowance, which can remove it entirely for very small payrolls.
How is National Insurance worked out for company directors?+
Directors use an annual (cumulative) earnings period rather than each pay period, which changes the timing of when NIC becomes due across the year.