Resources

National insurance

Class 1

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

2025/26:

Earnings per week %
Up to £242 Nil
£242.01 - £967 8
Over £967 2

Entitlement to state pension and other 'contribution-based benefits' is retained for earnings between £125 and £242 per week.

2024/25:

Earnings per week % (from 6/1/24) % (to 5/1/24)
Up to £242 Nil Nil
£242.01 - £967 10 12
Over £967 2 2

Entitlement to state pension and other 'contribution-based benefits' is retained for earnings between £123 and £242 per week.

Employers

2025/26:

Earnings per week %
Up to £96 Nil
Over £96 15

2024/25:

Earnings per week %
Up to £175 Nil
Over £175 13.80

Other National Insurance payable by employers

Class 1A

15% (13.8% 2024/25) on broadly all taxable benefits provided to employees and on certain taxable termination and sporting testimonial payments in excess of £30,000.

Class 1B

15% (13.8% 2024/25) on taxable PAYE Settlement Agreements.

Class 2 and 4 (self-employed)

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.

2025/26:

Class 2 (£)
Flat rate per week 3.50
Small Profits Threshold (per year) 6,845

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.

2024/25:

Class 2 (£)
Flat rate per week 3.45
Small Profits Threshold (per year) 6,725

Class 4

2025/26:

Annual profits %
Up to £12,570 Nil
£12,570.01 - £50,270 6
Over £50,270 2

2024/25:

Annual profits %
Up to £12,570 Nil
£12,570.01 - £50,270 9
Over £50,270 2

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.

Flat rate per week: £17.75