National Insurance contributions

National Insurance contributions (NICs) are payments made by employees, employers and self-employed people. They help fund certain state benefits, including the State Pension.

The type of National Insurance you pay depends on your employment status and how much you earn or make in profits. There are different classes of National Insurance, with most people paying one of the following:

• Class 1 – paid by employees through PAYE, with employers also making contributions.
• Class 4 – paid by self-employed people whose profits are above the relevant threshold.
• Voluntary Class 2 – available to some self-employed people who want to protect their entitlement to the State Pension and certain other benefits.
• Class 3 – voluntary contributions that may be available if you want to fill gaps in your National Insurance record.

For the 2026/27 tax year, you’ll normally pay National Insurance if you’re aged 16 or over and:

• you’re an employee earning more than £242 a week, or
• you’re self-employed with profits above £12,570 a year.

The type of National Insurance contribution (NIC) you pay depends on whether you’re employed, self-employed or making voluntary contributions to fill gaps in your National Insurance record.

Class 1 NICs: Employees below State Pension age who earn more than £242 a week pay Class 1 National Insurance. These contributions are deducted automatically from your wages through PAYE by your employer. Employers also pay National Insurance on their employees’ earnings.

Class 1A and Class 1B NICs: Employers pay these contributions on certain employee benefits and expenses, such as company cars or private medical insurance.

Class 2 NICs: If you’re self-employed and your profits are below the Small Profits Threshold, or you make a loss, you may choose to pay voluntary Class 2 National Insurance contributions. These can help protect your entitlement to the State Pension and certain other state benefits.

Class 3 NICs: Class 3 contributions are voluntary contributions that can help fill gaps in your National Insurance record and increase your entitlement to the State Pension.

Class 4 NICs: Self-employed people with profits of more than £12,570 a year pay Class 4 National Insurance through Self Assessment.

The amount of National Insurance you pay depends on your employment status, earnings or profits.

For the 2026/27 tax year, the main National Insurance rates are:

Use our calculator to find out about National Insurance Contributions for the current tax year. 

How you pay National Insurance depends on the type of contribution.

• Employees pay Class 1 National Insurance through PAYE. Their employer deducts the contributions from their wages before they are paid, and pays the deductions to HMRC.
• Employers pay employer National Insurance contributions, including any Class 1A or Class 1B contributions due on taxable employee benefits and expenses.
• Self-employed people pay any Class 4 National Insurance due as part of their Self Assessment tax bill. If they choose to pay voluntary Class 2 contributions, these are also paid through Self Assessment.
• People making voluntary Class 3 contributions can pay HMRC using a range of payment methods, including Direct Debit and online banking.

National Insurance credits help protect your National Insurance record when you’re unable to pay National Insurance contributions. They can help you qualify for the State Pension and certain other state benefits.

You may receive National Insurance credits automatically or you may need to apply for them, depending on your circumstances. For example, you may qualify if you’re:

• claiming certain benefits, such as Jobseeker’s Allowance or Employment and Support Allowance
• a parent or carer
• unable to work because of illness or disability.

It’s a good idea to check your National Insurance record regularly to make sure you’ve received any credits you’re entitled to and to identify any gaps in your record. You can also get a State Pension forecast to see how your National Insurance record affects your future State Pension.

If you have gaps in your National Insurance record, you may be able to fill them by making voluntary National Insurance contributions.