National insurance
Class 1
Employees start paying Class 1 NIC from age 16 (if sufficient earnings).
Employers pay Class 1 NIC in accordance with the table below.
Employer NIC for employees under the age of 21 and apprentices under the age of 25 is reduced from the normal rate to 0% up to the Upper Secondary Threshold of £967 per week. Also applies to veterans in the first 12 months of employment.
Employees Class 1 NIC stop when they reach their 'State Pension age'. The employer's contribution continues.
Employees
2025/26:
| Earnings per week |
% |
| Up to £242 |
Nil |
| £242.01 - £967 |
8 |
| Over £967 |
2 |
Entitlement to state pension and other 'contribution-based benefits' is retained for earnings between £125 and £242 per week.
2024/25:
| Earnings per week |
% (from 6/1/24) |
% (to 5/1/24) |
| Up to £242 |
Nil |
Nil |
| £242.01 - £967 |
10 |
12 |
| Over £967 |
2 |
2 |
Entitlement to state pension and other 'contribution-based benefits' is retained for earnings between £123 and £242 per week.
Employers
2025/26:
| Earnings per week |
% |
| Up to £96 |
Nil |
| Over £96 |
15 |
2024/25:
| Earnings per week |
% |
| Up to £175 |
Nil |
| Over £175 |
13.80 |
Other National Insurance payable by employers
Class 1A
15% (13.8% 2024/25) on broadly all taxable benefits provided to employees and on certain taxable termination and sporting testimonial payments in excess of £30,000.
Class 1B
15% (13.8% 2024/25) on taxable PAYE Settlement Agreements.
Class 2 and 4 (self-employed)
A self-employed person starts paying Class 2 and Class 4 NIC from 16 or over (if sufficient profits).
Class 2 NIC stop when a person reaches State Pension age.
From 6 April 2024, there is no longer a requirement to pay Class 2. Voluntary contributions can still be made.
Class 4 NIC stop from the start of the tax year after the one in which the person reaches State Pension age.
2025/26:
| Class 2 |
(£) |
| Flat rate per week |
3.50 |
| Small Profits Threshold (per year) |
6,845 |
A self-employed person with profits below the Small Profits Threshold might decide to carry on paying Class 2 voluntarily to accrue entitlement to the State Pension and other benefits.
2024/25:
| Class 2 |
(£) |
| Flat rate per week |
3.45 |
| Small Profits Threshold (per year) |
6,725 |
Class 4
2025/26:
| Annual profits |
% |
| Up to £12,570 |
Nil |
| £12,570.01 - £50,270 |
6 |
| Over £50,270 |
2 |
2024/25:
| Annual profits |
% |
| Up to £12,570 |
Nil |
| £12,570.01 - £50,270 |
9 |
| Over £50,270 |
2 |
Class 3
A person needs 35 years (30 years if State Pension age is before 6 April 2016) of NIC to get a full State Pension.
Class 3 voluntary contributions can be paid to fill or avoid gaps in a NI record.
Flat rate per week: £17.75