National Insurance (Class 1)
Class 1 employee National Insurance is charged on your earnings between the Primary Threshold and the Upper Earnings Limit, with a lower rate above that. Unlike income tax it is worked out per pay period and is not cumulative. This page explains the thresholds and rates — and why the employer’s contribution sits on top of your wage, never inside your take-home.
Charged per pay period, not cumulatively
Class 1 employee National Insurance is charged on your earnings between the Primary Threshold (£12,570) and the Upper Earnings Limit (£50,270) at 8%, then at 2% above the Upper Earnings Limit. Below the Primary Threshold there is no charge.
Unlike income tax, NI is worked out per pay period and is not cumulative across the year. That means an uneven year — a big bonus month, say — can be charged more NI than the same annual pay spread evenly. The calculator applies the annual-equivalent thresholds and flags that per-period NI on irregular pay can differ.
Employee (Class 1) rates
The Category A employee rates. These are the primary contributions taken from your pay.
| Earnings | Rate |
|---|---|
| Up to £12,570 (Primary Threshold) | Nil |
| £12,570 – £50,270 (Upper Earnings Limit) | 8% |
| Over £50,270 | 2% |
Employer NI is on top — never a deduction
Your employer also pays secondary (employer) National Insurance at 15% on your earnings above the Secondary Threshold (£5,000). This is an employer cost added to your wage — it never comes out of your take-home pay. The calculator shows it as a separate figure and folds it into the total cost to your employer, so a higher salary and its true cost are both visible.
The figures on this page come from GOV.UK and HMRC and are cited where they are used. If a rate changed recently it may not be reflected here yet — for an official amount, check the cited source or ask HMRC.