What is National Insurance?
National Insurance is a second tax on earnings, taken alongside income tax. Paying it, or earning enough to be treated as paying it, builds up your record for the State Pension and some benefits. Your employer pays its own share on top of your pay as well; that is covered in employer NI and what you cost.
Most employees are in category A, which is what this site works out. You will see the letter on your payslip next to your NI number.
What are the National Insurance rates for 2026/27?
| Week | Month | Year | |
|---|---|---|---|
| Lower earnings limit | £129 | £559 | £6,708 |
| Primary threshold: 8% starts | £242 | £1,048 | £12,570 |
| Upper earnings limit: 2% above | £967 | £4,189 | £50,270 |
The yearly primary threshold matches the income tax Personal Allowance, and the upper earnings limit matches the point where 40% income tax starts. So a basic-rate taxpayer pays 20% tax plus 8% NI on each extra pound, and a higher-rate taxpayer pays 40% plus 2%.
How much National Insurance do I pay on £30,000?
£30,000 a year. NI is 8% of the pay between £12,570 and £30,000, which is £17,430. That gives £1,394.40 a year, or £116.20 a month.
£70,000 a year. The full 8% band, from £12,570 to £50,270, costs £3,016.00. The £19,730 above £50,270 adds 2%, which is £394.60. Total: £3,410.60.
£1,000 in one week. Nothing on the first £242, 8% on the next £725 (£58.00), and 2% on the last £33 (£0.66). Total £58.66. This is the same example GOV.UK uses on its National Insurance rates page.
How do I check the NI on my payslip?
For monthly pay, take your pay for the month, subtract £1,048, and multiply by 8%. On £2,500 a month that is 8% of £1,452, which is £116.16. If your monthly pay is above £4,189, the part above it is charged at 2% instead.
Why is National Insurance worked out each payday?
Income tax is added up over the year. National Insurance is not: each payday is worked out by itself, using the weekly or monthly thresholds above. For steady pay that makes no difference. For uneven pay it does.
Take £30,000 a year with a £5,000 bonus paid in one month. The bonus month’s pay jumps to £7,500, and everything above £4,189 in that month is charged at only 2%. The year’s NI comes to £1,595.74. Someone paid the same £35,000 evenly across the year pays £1,794.40: £198.66 more. The calculator handles a bonus this way.
What lowers my National Insurance?
- Salary sacrifice. Giving up salary in return for an employer pension contribution cuts the pay NI is charged on. That is why it beats the other pension types for most people.
- Reaching State Pension age. You stop paying employee NI, even if you keep working. Show your employer proof of your age. Your employer still pays its share.
Pension contributions through net pay or relief at source do not lower NI. Neither do Gift Aid donations.
Do I pay less NI with two jobs?
Each employer works out NI only on the pay it gives you, with its own threshold. That can make a real difference. One job paying £24,000 a year costs £914.40 in NI. Two jobs paying £12,000 each cost £0.00, because each one sits under the £12,570 threshold. Income tax does not work like this: you have one Personal Allowance, so the second job is usually taxed from the first pound with a BR code.
What is the lower earnings limit?
If you earn at least £129 a week but less than £242, you pay no NI, yet the week still counts towards your State Pension record. Earn below £129 a week in every job and the week does not count, so it can be worth checking your record on GOV.UK if your hours are low.
How much NI will I pay?
The calculator shows NI by rate for any pay, and the payslip checker compares a monthly payslip line by line.