Last updated: 18 October 2026
National Insurance has changed a lot in recent years. Employee rates were cut from 12% to 8% and Class 4 from 9% to 6%, compulsory Class 2 was abolished, and in April 2025 employer’s National Insurance rose to 15% with a much lower threshold.
By comparison, 2026/27 is fairly settled. Most thresholds are frozen, while the lower earnings limit and the voluntary rates have risen with inflation. Here is the National Insurance landscape for 2026/27.
Employees And Employers: Class 1
The Class 1 thresholds for 2026/27 are shown in the table below. Only the lower earnings limit has changed from 2025/26.
| National Insurance thresholds for 2026/27 | |||
| Threshold | Weekly | Monthly | Annual |
| Lower earnings limit | £129 | £559 | £6,708 |
| Primary threshold | £242 | £1,048 | £12,570 |
| Secondary threshold | £96 | £417 | £5,000 |
| Upper earnings limit | £967 | £4,189 | £50,270 |
| Upper secondary threshold for under 21s | £967 | £4,189 | £50,270 |
| Apprentice upper secondary threshold | £967 | £4,189 | £50,270 |
| Veterans’ upper secondary threshold | £967 | £4,189 | £50,270 |
| Freeport and investment zone upper secondary threshold | £481 | £2,083 | £25,000 |
Employees pay contributions at the main rate of 8% on earnings between the primary threshold and the upper earnings limit, and at the additional rate of 2% on earnings above the upper earnings limit. Employees earning between the lower earnings limit and the primary threshold are treated as paying contributions at a notional zero rate, which gives them a qualifying year for state pension purposes at no cost.
Employers pay secondary contributions at 15% on earnings above the secondary threshold or, where relevant, above the upper secondary threshold.
The Employment Allowance is £10,500 for 2026/27, and most employers can claim it, although companies whose only employee is a director cannot.
Employers: Class 1A
Employers pay Class 1A National Insurance on most taxable benefits in kind, on taxable termination payments over £30,000 and on taxable sporting testimonials over £100,000. The Class 1A rate matches the secondary Class 1 rate and is 15% for 2026/27.
Employers: Class 1B
Class 1B National Insurance contributions are also paid only by employers. They are due on items included in a PAYE Settlement Agreement (PSA), in place of the Class 1 or Class 1A that would otherwise arise, and also on the tax due under the PSA. As with Class 1A, the Class 1B rate matches the secondary Class 1 rate and is 15% for 2026/27.
Self-Employed: Class 2
Class 2 contributions are how the self-employed build up entitlement to the state pension. Class 2 has not been compulsory since 6 April 2024. For 2026/27, Class 2 is treated as paid where profits are £7,105 or more, giving a qualifying year for state pension purposes at no cost.
Where profits are below £7,105, Class 2 contributions can be paid voluntarily at £3.65 a week (£189.80 for the year). This is much cheaper than Class 3.
Self-Employed: Class 4
The self-employed also pay Class 4 contributions on their profits. These do not build up any benefit entitlement and work more like a tax.
For 2026/27, Class 4 is payable at the main rate of 6% on profits between the lower profits limit of £12,570 and the upper profits limit of £50,270, and at 2% on profits above the upper profits limit.
Voluntary contributions: Class 3
You can pay voluntary Class 3 contributions to fill gaps in your National Insurance record. For 2026/27, the Class 3 rate is £18.40 a week (£956.80 for a full year). Before paying, check your record and State Pension forecast on GOV.UK, because a missing year does not always reduce your pension.
National Insurance Rates at a Glance: 2026/27
- Employee Class 1: 8% between £12,570 and £50,270, then 2%
- Employer Class 1, 1A and 1B: 15% (Class 1 above £5,000)
- Class 2 (voluntary): £3.65 a week
- Class 3 (voluntary): £18.40 a week
- Class 4: 6% between £12,570 and £50,270, then 2%
Partner Note: SSCBA 1992, Pt. 1 (ss. 1–19).
