What are the national insurance contribution rates for employees?
Answered 11 March 2026
I now have sufficient information to provide a comprehensive answer. Here is a structured response:
National Insurance Contributions: Employee (Primary Class 1) Rates
What the law says
Employee NICs are paid as primary Class 1 contributions on salary or wages. The key statutory provisions are found in the Social Security Contributions and Benefits Act 1992 (SSCBA 1992), as amended:
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From 6 April 2024 onwards, section 1 of the National Insurance Contributions (Reduction in Rates) Act 2024 amended section 8 SSCBA 1992 so that:
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Main primary percentage: 8% (on earnings between the Primary Threshold and the Upper Earnings Limit)
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Additional primary percentage: 2% (on all earnings above the Upper Earnings Limit)
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From 6 January 2024 to 5 April 2024, the main primary percentage was 10% and the additional primary percentage was 2%, following section 1 of the National Insurance Contributions (Reduction in Rates) Act 2023.
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For the 2025–26 tax year, the relevant thresholds (set by the Social Security (Contributions) (Rates, Limits and Thresholds Amendments…) Regulations 2025) are:
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Lower Earnings Limit (LEL): £125/week (£6,500/year)
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Primary Threshold (PT): £242/week (£12,570/year)
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Upper Earnings Limit (UEL): £967/week (£50,270/year)
HMRC guidance / practice
Structure of primary Class 1 NICs:
- Class 1 NICs are payable on salary or wages between certain levels.
- The employee's contribution (deducted from pay) is the primary contribution.
- Class 1 NIC counts towards employee state benefits such as the State Pension.
How the rates apply:
- No primary contributions are paid on earnings between the LEL and the Primary Threshold, though contributions are treated as paid on earnings at the LEL up to the PT (protecting benefit entitlement).
- Primary Class 1 NICs are payable at the main rate (8%) on earnings from the PT up to the UEL.
- Primary Class 1 NICs are payable at the additional rate (2%) on all earnings above the UEL.
Summary table for 2025–26:
| Band | Weekly earnings | Rate |
|---|---|---|
| Below LEL | Under £125 | 0% (no liability) |
| LEL to PT | £125–£242 | 0% (treated as paid) |
| PT to UEL | £242–£967 | 8% |
| Above UEL | Over £967 | 2% |
Married women/widows reduced rate: From 6 April 2024, those with a valid election pay a reduced rate of 1.85% (instead of 8%) on earnings between the PT and UEL.
Citation sources
There is a Lower Earnings Limit (‘LEL’, see NIM01005) and a Primary and a Secondary Threshold (see NIM01008). No primary contributions are paid on earnings between the LEL and the Primary Threshold, with NICs becoming payable only when earnings exceed the Primary Threshold. However, primary contributions (see NIM01001) are treated as having been paid on earnings at the LEL (see NIM01005) up to and including the Primary Threshold (see also NIM01007 ). Secondary contributions are payable once earn
Part 1 General Citation and commencement 1 These Regulations may be cited as the Social Security (Contributions) (Rates, Limits and Thresholds Amendments, National Insurance Funds Payments and Extension of Veteran's Relief) Regulations 2025 and come into force on 6th April 2025. Part 2 Rates, limits and thresholds for National Insurance Contributions Interpretation 2 In this Part— “ the Act ” means the Social Security Contributions and Benefits Act 1992; “ the Northern Ireland Act ” means the So
For the tax year beginning 6 April 2011 onwards, the reduced rate of contribution in respect of a married woman’s liability for Class 1 contributions payable at the main primary percentage was 5.85% (but see below for the 2022 to 2023 tax year) payable on all earnings between the Primary Threshold (PT) and the Upper Earnings Limit (UEL). From 6 January 2024, Section 1 of the National Insurance Contributions (Reduction in Rates) Act 2023 lowered the reduced rate to 3.85% on all earnings between t
From 6 April 2003, primary Class 1 NICs are payable on all earnings paid in an earnings period which exceed the Primary Threshold. The amount of Class 1 NICs payable depends upon the level of earnings. This means that, from 6 April 2003, the Upper Earnings Limit is effectively removed for the purposes of calculating the amount of primary Class 1 contributions due in an earnings period. Guidance on: the Primary Threshold is provided at NIM01008 the Upper Earnings Limit is provided at NIM01009 ear
Class 1 National Insurance contributions are payable on salary or wages (between certain levels) and consists of the employee’s contribution (deducted from pay), which is known as the primary contribution the employer’s contribution, which is known as the secondary contribution. Class 1 NIC counts towards employee state benefits such as state pension.
The examples are to illustrate the principle of applying an annual earnings period. NIM12028 – NIM12031 relate to 2025 to 2026 and do not include any employments that attract an employer NICs relief The 2025 to 2026 rates and limits used are: Rates and Limits Weekly Amount Annual Amount Lower Earnings Limit (LEL) £125 £6,500 Upper Earnings Limit (UEL) £967 £50,270 Secondary Threshold (ST) £96 £5,000 Primary Threshold (PT) £242 £12,570 Primary Main Rate 8% Additional Rate 2% Secondary Rate
NICs are paid at the same rate by those who are included in the New State Pension, following the ending of contracting-out of the State Second Pension (State Earnings Related Pension Scheme (SERPS) before 6 April 2002) on 5 April 2016. The primary contribution element (see NIM01001) is payable at a reduced rate for certain married women and widows. Section 8 SSCBA 1992 provides that for the tax year beginning 6 April 2011 onwards: the main primary percentage is 12% and the additional primary pe