What percentage of National Insurance do employees pay in 2026/27?

Employees pay 8% Class 1 National Insurance on earnings between £12,570 and £50,270 a year, and 2% on earnings above £50,270. Below £12,570 you pay nothing. The rate falls on your top slice of pay rather than rising like income tax.

Why is my National Insurance higher in a month I did overtime?

NI is assessed per pay period, not across the year. Extra pay in one month is charged against that single month's 8% band, so more is taxed at 8% than an averaged month would be. Unlike income tax, it does not reconcile at year end.

How much National Insurance do I pay on a £35,000 salary?

About £1,794 a year, roughly £150 a month. NI is charged at 8% on the £22,430 that sits between £12,570 and your £35,000 salary. None is due on the first £12,570.

Do self-employed people pay the same National Insurance?

No. The self-employed pay Class 4 NI at 6% on profits between £12,570 and £50,270 and 2% above, collected through Self Assessment rather than payroll. Employees pay Class 1 at 8% then 2% on the same bands.

Guide · 4 minute read · Updated 10 Jul 2026

How much National Insurance do I pay?

If you are employed, you pay 8% National Insurance on earnings between £12,570 and £50,270 a year, then 2% on anything above. The twist is that NI is worked out afresh each pay period, not smoothed over the year like income tax, which is why it can behave oddly in an uneven month.

The employee rates: 8% then 2%

Class 1 National Insurance is the version employees pay, deducted from your pay before it reaches you. In 2026/27 the primary threshold is £12,570 a year, the same as the personal allowance, and the upper earnings limit is £50,270, the same as the higher-rate tax threshold.

Between those two figures you pay 8% (the main rate). Above £50,270 the rate drops to 2%, not up. That surprises people: unlike income tax, which rises to 40% at the higher-rate threshold, NI gets cheaper on your top slice of pay. Earn under £12,570 and you pay no NI at all, though you may still get a qualifying year towards the State Pension.

Why NI feels different to income tax

Income tax under PAYE is cumulative: payroll tracks your income across the whole tax year and keeps your deductions smooth. National Insurance is not. It is assessed on each pay period in isolation, so a monthly-paid employee is charged on that month's pay against one twelfth of the thresholds (£1,048 and £4,189 a month).

That per-period assessment matters when your pay is uneven. A big commission or overtime month is squeezed against a single month's 8% band, so more of it than usual is charged at 8% (or, past £4,189, drops to 2%). And crucially, NI does not reconcile at year end the way income tax does. Two people earning the same annual total can pay different NI if one got it in a steady monthly wage and the other in lumps.

A worked example

Take a £35,000 salary, paid monthly. NI is charged on earnings above £12,570, so:

£35,000 minus £12,570 leaves £22,430 in the 8% band.
8% of £22,430 is £1,794 of National Insurance for the year, about £150 a month.

Now a £60,000 salary. The first £50,270 minus £12,570, so £37,700, is charged at 8% (£3,016). The remaining £9,730 above £50,270 is charged at just 2% (£195). Total NI is about £3,211, even though the salary is far higher, because that top slice only attracts 2%. Run your own figure through the take-home pay calculator to see tax and NI together.

Employer NI and self-employed Class 4

Your employer pays National Insurance too, on top of your wage, not out of it. In 2026/27 that is 15% on your earnings above £5,000 a year. You never see it on your payslip, but it is part of what it costs to employ you, and it is one reason salary sacrifice into a pension can be attractive: sacrificed pay escapes both your NI and the employer's.

If you are self-employed, you pay Class 4 National Insurance instead: 6% on profits between £12,570 and £50,270, then 2% above, mirroring the employee bands at a lower main rate. It is collected through Self Assessment rather than payroll, so it lands as part of your January tax bill rather than each month.

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Take-home pay calculator

What your salary actually pays after tax, NI, pension and student loan.

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Self-employed tax calculator

Income tax, Class 4 NI and payments on account from your trading profit.

Common questions

What percentage of National Insurance do employees pay in 2026/27?: Employees pay 8% Class 1 National Insurance on earnings between £12,570 and £50,270 a year, and 2% on earnings above £50,270. Below £12,570 you pay nothing. The rate falls on your top slice of pay rather than rising like income tax.
Why is my National Insurance higher in a month I did overtime?: NI is assessed per pay period, not across the year. Extra pay in one month is charged against that single month's 8% band, so more is taxed at 8% than an averaged month would be. Unlike income tax, it does not reconcile at year end.
How much National Insurance do I pay on a £35,000 salary?: About £1,794 a year, roughly £150 a month. NI is charged at 8% on the £22,430 that sits between £12,570 and your £35,000 salary. None is due on the first £12,570.
Do self-employed people pay the same National Insurance?: No. The self-employed pay Class 4 NI at 6% on profits between £12,570 and £50,270 and 2% above, collected through Self Assessment rather than payroll. Employees pay Class 1 at 8% then 2% on the same bands.

Guidance and education, not regulated financial advice.