National Insurance Contributions: Rates, Classes & How NIC Works in 2025/26

Tax Guides · 10 min read · Updated 2026-03-24

A complete guide to National Insurance contributions in the UK, covering all NIC classes, current rates and thresholds, how NIC affects your state pension, and strategies to minimise your liability.

Written by Krishna, Founder & HMRC-registered tax agent at TaxRoot.

How much National Insurance do I pay as an employee?

Employees pay Class 1 NIC at 8% on earnings between £12,570 and £50,270 per year, and 2% on earnings above £50,270. You do not pay NIC on the first £12,570 of annual earnings. Your employer deducts NIC from your pay along with income tax through the PAYE system.

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