National Insurance (NI) is a type of tax that helps fund the NHS, state pensions, and certain benefits. Most people in the UK pay NI if they earn above a certain amount, but the rules can vary based on your employment status and income.

Who Pays National Insurance?

You’ll pay NI if you’re:

• Employed and earn over £1,048 a month (£12,570 a year)
• Self-employed and make profits over £12,570 a year
• Between 16 and State Pension age

National Insurance Classes

There are several classes of NI contributions:

• Class 1: Paid by employees and employers through PAYE
• Class 2: Flat-rate contributions by self-employed individuals
• Class 3: Voluntary contributions to fill gaps in your NI record
• Class 4: Additional percentage of profits paid by self-employed

Rates for 2025/26

As of the 2025/26 tax year:

• Class 1 (Employees): 8% on earnings between £12,570 and £50,270, and 2% on earnings above £50,270
• Class 1 (Employers): 13.8% on earnings above £9,100 (with no upper limit)
• Class 4 (Self-Employed): 6% on profits between £12,570 and £50,270, and 2% on profits above £50,270

While the main National Insurance rate for employees is 8% on mid-level earnings, a reduced rate of 2% still applies to income above £50,270.

Why It Matters

NI contributions affect your eligibility for:

• The State Pension
• Maternity Allowance
• Jobseeker’s Allowance (New Style)
• Bereavement benefits

You usually need at least 10 qualifying years of NI contributions to get any State Pension, and 35 years for the full amount.

How to Check Your NI Record

You can check your contributions and see if you have any gaps by logging in to your National Insurance record on GOV.UK.

Staying on top of your NI contributions helps ensure you qualify for vital benefits like the State Pension — and gives you peace of mind about your future.