National Insurance (NI) is a compulsory deduction from your earnings that funds the NHS, state pension and other benefits. The amount you pay depends on your employment status and how much you earn.
Employee NI (Class 1)
Employees pay 8% NI on earnings between £12,570 and £50,270 per year, and 2% on anything above £50,270. Your employer also pays NI at 13.8% on your earnings above £9,100 (the secondary threshold).
Self-Employed NI (Class 2 & 4)
Self-employed workers pay Class 2 NI at £3.45/week (if profits exceed £12,570) and Class 4 NI at 6% on profits between £12,570 and £50,270, plus 2% above that. These are paid through Self Assessment.
NI and Your State Pension
NI contributions build your qualifying years for the state pension. You need 35 qualifying years for the full new state pension (£221.20/week in 2025/26) and at least 10 years for any entitlement.