National Insurance Rates 2026/27: Class 1 Employee Contributions Explained

National Insurance (NI) is a mandatory payroll contribution deducted from employee salaries to fund statutory state benefits, the State Pension, and the National Health Service (NHS).

Class 1 Employee Rates (2026/27)

• Up to £12,570 per year (Primary Threshold): 0% National Insurance.
• £12,571 to £50,270 per year (Main Rate): 8% deducted from earnings within this bracket.
• Over £50,270 per year (Upper Earnings Limit): 2% deducted on all earnings above this threshold.