Answers · UK 2025/26
Do I pay NI on a bonus UK?
Yes. National Insurance applies to bonuses just like to regular pay. You pay 8% on the slice of the bonus that falls between £12,570 and £50,270, then 2% above £50,270. Salary sacrifice or bonus sacrifice into a pension is the standard way to avoid NI on a bonus.
Full answer
A bonus is Class 1 earnings, so the same NI rules apply. If your monthly bonus tips earnings into the upper-earnings-limit territory (£4,189 a month), the 2% rate kicks in for the rest of that period. Year-end the totals reconcile — there is no separate annual NI assessment for employees. Example: £55,000 salary with a £10,000 bonus. Without sacrifice, bonus NI = 2% × £10,000 = £200. With bonus sacrifice into a pension: the £10,000 goes to the pension gross, the employee saves £200 NI plus £4,000 Income Tax (at 40%), and the employer saves £1,500 of Class 1 secondary NI (15%), often passed back as an enhanced pension top-up. Net cost of putting a £10,000 bonus into a pension can be under £4,300 for a higher-rate taxpayer. Note: directors are assessed annually on a single cumulative NI calculation, which can produce different bonus-period results.
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This answer is informational only and does not constitute financial, tax or legal advice. Figures are for the 2025/26 UK tax year. See our methodology and sources.