Your gross annual salary before tax and NI.
Your Annual Employee NI
£1,394.40
Everything you need to know about National Insurance contributions in the UK
National Insurance (NI) is a tax on earnings paid by both employees and employers. It funds the State Pension, NHS, and other benefits. As an employee, you pay Class 1 NI on earnings above the Primary Threshold (£12,570/year).
You pay 8% on earnings between the Primary Threshold (£12,570) and the Upper Earnings Limit (£50,270). Above the UEL, the rate drops to 2%. Earnings below the Primary Threshold are NI-free.
Employers pay 15% NI on all employee earnings above the Secondary Threshold (£5,000/year for 2025/26). This is a significant cost on top of your salary that your employer bears.
The employer Secondary Threshold was reduced from £9,100 to £5,000, and the employer rate increased to 15%. To offset this for small businesses, the Employment Allowance was doubled to £10,500 and the £100k eligibility cap was removed.
Yes. If you earn between the Lower Earnings Limit (£6,500/year) and the Primary Threshold (£12,570/year), you pay no NI but still build qualifying years for the State Pension. Below the LEL, you get no pension credits.
HMRC-Aligned: Based on HMRC rates for 2025/26 (Category A). This calculator provides estimates only — refer to GOV.UK for official guidance.
This calculator uses official rates and thresholds from:
Last verified: February 2026 · Tax year 2025/26. Results are indicative — consult a qualified accountant for personalised advice.
Reviewed by M. Samiuddin Quadri, ACCA — Chartered Certified Accountant at Gladstone & Co. · Updated for the 2025/26 tax year.
Disclaimer: This calculator provides estimates based on current HMRC rates and thresholds for the 2025/26 tax year. It does not constitute professional tax, financial, or legal advice. Your actual liability may differ depending on your individual circumstances. Always consult a qualified accountant or tax adviser before making financial decisions. Read our terms
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