National Insurance contributions (NIC) – rates and allowances

• 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 – Class 1 – 2026/27

Entitlement to state pension and other contribution-based benefits is retained for earnings between £129 and £242 per week.

Employers – Class 1 – 2026/27

Other National Insurance payable by employers

Class 1A

– 15% on broadly all taxable benefits provided to employees and on certain taxable termination payments in excess of £30,000

Class 1B

– 15% on taxable PAYE Settlement Agreements

Self-employed – Class 2 and 4

• 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.

Self-employed – Class 2 – 2026/27

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.

Class 4 – 2026/27

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.

Class 3 – 2026/27

Flat rate per week £18.40