National Insurance Calculator

National Insurance (NI) is the second main payroll tax in the UK, funding the State Pension, NHS contributions, contributory benefits and statutory parental pay. Unlike income tax, NI is reserved to Westminster — rates and thresholds are the same across England, Scotland, Wales and Northern Ireland. For 2025/26, employees (Class 1) pay 8% on earnings between £12,570 and £50,270 (the Upper Earnings Limit), then 2% on everything above. Employers (Class 1 secondary) pay 15% on every pound above the Secondary Threshold of £5,000 — significantly higher than the 13.8% that applied until April 2025, and on a much lower threshold (it was £9,100). This calculator shows both sides of the NI ledger: the deduction from your gross pay (visible on your payslip) and the employer contribution that your salary effectively costs on top. Useful when negotiating pay, considering total compensation, or modelling salary-sacrifice savings. Salary sacrifice into pension is one of the most effective NI mitigation tools — every £1 of sacrificed salary saves you 8% (or 2%) employee NI plus the employer 15% NI, which generous employers may pass back to you. NI is calculated per pay period, not annually for most employees — so monthly variation in pay (overtime, bonus, commission) can produce NI bills that feel inconsistent with your annual total. Company directors use an annual earnings period instead, which often leaves them paying zero NI early in the year and large amounts later. State Pension age earners stop paying employee NI altogether but income tax still applies; the employer still pays Class 1 secondary NI. This tool covers Class 1 employee and employer NI. It does not handle Class 2 (self-employed flat-rate — abolished from April 2024 for most), Class 3 (voluntary contributions at £17.45/week to plug gap years in your NI record), or Class 4 (self-employed profit-based — 6% from £12,570 to £50,270, 2% above). For self-employed NI use the Self-Employed Tax calculator; for full payroll simulation including income tax and student loan, see Take-Home Pay. State Pension qualifying years require 35 years of contributions or credits for the full new State Pension (£221.20/week from April 2025).