National Insurance Class 1: employee rates and thresholds for 2026-27
Class 1 National Insurance is deducted from an employee's earnings. The 2026-27 rates are 8% between the primary and upper earnings limits, and 2% above the upper limit.
On this page
- Tax year
- 6 April 2026 to 5 April 2027.
- Primary threshold
- £242 per week. Nothing is deducted below this.
- Upper earnings limit
- £967 per week. The 2% rate applies above this.
- Rate between primary and upper
- 8% of weekly earnings between £242 and £967.
- Rate above upper earnings limit
- 2% of weekly earnings above £967.
Class 1 is deducted progressively, not at a single rate on the whole
Class 1 National Insurance is the contribution paid by employees on their earnings. It is not deducted below the primary threshold, charged at 8% between the primary threshold and the upper earnings limit, and at 2% above the upper earnings limit. These are three separate portions, applied in order. GOV.UK, National Insurance contributions (opens in a new tab).
The thresholds are weekly, and an employer applies them to each pay period. If an employee is paid monthly, the employer uses the equivalent monthly thresholds. The same progressive structure applies: no deduction below the primary threshold, 8% up to the upper limit, 2% above it.
A worked example on weekly earnings of £1,200
On weekly earnings of £1,200, Class 1 National Insurance is charged on three portions. Nothing is deducted on the first £242 (the primary threshold). The next £725 (£967 minus £242) is charged at 8%, which is £58. The remaining £233 above the upper earnings limit is charged at 2%, which is £4.66. Total Class 1 National Insurance is £62.66 for that week. This example leaves out employer National Insurance, the Employment Allowance and any reduced-rate certificates.
National Insurance and Income Tax are separate deductions
National Insurance is a separate contribution from Income Tax, with its own thresholds and rates. Both appear on a payslip as deductions from gross pay, but they are governed by different rules and the thresholds change independently from one tax year to the next. The Personal Allowance that Income Tax uses has no effect on the National Insurance primary threshold.
An employee who has more than one job may pay less if they defer National Insurance because they have more than one job. GOV.UK, National Insurance (opens in a new tab).
The married women's reduced rate closed to new elections in April 1977; only women who opted in before then and kept the right can still pay it. GOV.UK, Reduced rate National Insurance for married women (opens in a new tab).
Class 1 is deducted by an employer through PAYE
Class 1 National Insurance is paid through the PAYE payroll system. An employer deducts it from wages before the employee receives pay, and shows the amount on the payslip. The employer then pays it to HMRC alongside Income Tax. The employee does not make a separate payment. GOV.UK, National Insurance contributions (opens in a new tab).
Directors are classed as employees, but their contributions are worked out from annual earnings rather than each pay period. GOV.UK, National Insurance for company directors (opens in a new tab).