On a £30,000 salary in 2026/27 you pay £1,394 in National Insurance — £116 per month. Employees pay 8% on earnings between £12,571 and £50,270 (the Upper Earnings Limit), then just 2% above that. Below the £12,570 Primary Threshold, you pay nothing.
The tables below give your exact annual and monthly NIC at every major salary point, your combined income tax and NIC bill, and what you actually take home. For the full explanation of how NICs work and how to reduce them, see the National Insurance Guide.
Employee National Insurance — Annual Amount by Salary
Find your salary in the table below for your exact 2026/27 NIC figure.
| Gross Salary | Annual NIC | Monthly NIC | Effective NIC Rate |
|---|---|---|---|
| £12,000 | £0 | £0 | 0.0% |
| £15,000 | £194 | £16 | 1.3% |
| £18,000 | £434 | £36 | 2.4% |
| £20,000 | £594 | £50 | 3.0% |
| £22,000 | £754 | £63 | 3.4% |
| £25,000 | £994 | £83 | 4.0% |
| £28,000 | £1,234 | £103 | 4.4% |
| £30,000 | £1,394 | £116 | 4.6% |
| £32,000 | £1,554 | £130 | 4.9% |
| £35,000 | £1,794 | £150 | 5.1% |
| £38,000 | £2,034 | £170 | 5.4% |
| £40,000 | £2,194 | £183 | 5.5% |
| £42,000 | £2,354 | £196 | 5.6% |
| £45,000 | £2,594 | £216 | 5.8% |
| £48,000 | £2,834 | £236 | 5.9% |
| £50,000 | £2,994 | £250 | 6.0% |
| £55,000 | £3,111 | £259 | 5.7% |
| £60,000 | £3,211 | £268 | 5.4% |
| £70,000 | £3,411 | £284 | 4.9% |
| £80,000 | £3,611 | £301 | 4.5% |
| £100,000 | £4,011 | £334 | 4.0% |
Note: effective NIC rate falls above £50,270 because the rate drops from 8% to 2% on earnings above the Upper Earnings Limit.
How to Calculate Your NIC for Any Salary
The formula is straightforward. For 2026/27:
Step 1: Subtract the Primary Threshold (£12,570) from your salary. This is your NIC-liable earnings.
Step 2: Multiply earnings up to £50,270 by 8%.
Step 3: If you earn above £50,270, multiply any excess by 2% and add it on.
| Threshold | 2026/27 Amount | Rate |
|---|---|---|
| Primary Threshold (PT) | £12,570 | 0% below |
| Upper Earnings Limit (UEL) | £50,270 | 8% PT to UEL |
| Above UEL | — | 2% |
Worked example — £45,000 salary:
- Earnings above PT: £45,000 − £12,570 = £32,430
- All within the 8% band (below £50,270): £32,430 × 8% = £2,594/year
- Monthly: £2,594 ÷ 12 = £216/month
Worked example — £65,000 salary:
- Earnings from PT to UEL: £50,270 − £12,570 = £37,700 × 8% = £3,016
- Earnings above UEL: £65,000 − £50,270 = £14,730 × 2% = £295
- Total: £3,016 + £295 = £3,311/year
- Monthly: £3,311 ÷ 12 = £276/month
Your Take-Home Pay After Tax and NIC
National Insurance is charged on top of income tax, so it matters to see both together. The table below shows gross salary, income tax (2026/27 rates, standard Personal Allowance £12,570), employee NIC, and your actual take-home.
| Gross Salary | Income Tax | Employee NIC | Total Deducted | Take-Home |
|---|---|---|---|---|
| £15,000 | £486 | £194 | £680 | £14,320 |
| £18,000 | £1,086 | £434 | £1,520 | £16,480 |
| £20,000 | £1,486 | £594 | £2,080 | £17,920 |
| £22,000 | £1,886 | £754 | £2,640 | £19,360 |
| £25,000 | £2,486 | £994 | £3,480 | £21,520 |
| £28,000 | £3,086 | £1,234 | £4,320 | £23,680 |
| £30,000 | £3,486 | £1,394 | £4,880 | £25,120 |
| £32,000 | £3,886 | £1,554 | £5,440 | £26,560 |
| £35,000 | £4,486 | £1,794 | £6,280 | £28,720 |
| £38,000 | £5,086 | £2,034 | £7,120 | £30,880 |
| £40,000 | £5,486 | £2,194 | £7,680 | £32,320 |
| £45,000 | £6,486 | £2,594 | £9,080 | £35,920 |
| £50,000 | £7,486 | £2,994 | £10,480 | £39,520 |
| £55,000 | £9,432 | £3,111 | £12,543 | £42,457 |
| £60,000 | £11,432 | £3,211 | £14,643 | £45,357 |
| £70,000 | £15,432 | £3,411 | £18,843 | £51,157 |
| £80,000 | £19,432 | £3,611 | £23,043 | £56,957 |
| £100,000 | £27,432 | £4,011 | £31,443 | £68,557 |
Note: figures assume one job, no pension contributions, standard Personal Allowance, England/Wales income tax rates. Pension auto-enrolment contributions would reduce take-home further.
Combined Marginal Rate: What You Actually Pay on Each Extra £1
When you earn a pay rise, both income tax and NIC apply to each extra pound. The true marginal rate is the combined figure:
| Earnings Band | Income Tax Rate | NIC Rate | Combined Marginal Rate |
|---|---|---|---|
| £0–£12,570 | 0% | 0% | 0% |
| £12,571–£50,270 | 20% | 8% | 28% |
| £50,271–£100,000 | 40% | 2% | 42% |
| £100,001–£125,140 | 40%+20%* | 2% | 62% |
| Over £125,140 | 45% | 2% | 47% |
*At £100,001–£125,140, you lose £1 of Personal Allowance for every £2 earned, creating an effective 60% income tax rate. Combined with 2% NIC, the marginal rate is 62%.
The practical implication: A £1,000 bonus on a £40,000 salary costs you £280 in combined tax and NIC, leaving £720. The same £1,000 bonus on a £60,000 salary costs you £420, leaving £580. This is why pension salary sacrifice is most valuable between £12,570 and £50,270.
Self-Employed National Insurance 2026/27
Self-employed people pay two classes of NIC:
- Class 2: A flat £3.45/week (£179.40/year) on profits above £12,570
- Class 4: 6% on profits between £12,571 and £50,270; 2% above that
The self-employed rate on the main band (6%) is lower than the employee rate (8%), though self-employed workers don’t receive employer pension contributions.
| Annual Profit | Class 2 | Class 4 | Total NIC | Vs Employee |
|---|---|---|---|---|
| £15,000 | £179 | £146 | £325 | £194 (employee pays less) |
| £20,000 | £179 | £446 | £625 | £594 (employee pays less) |
| £25,000 | £179 | £746 | £925 | £994 (self-employed pays less) |
| £30,000 | £179 | £1,046 | £1,225 | £1,394 (self-employed pays less) |
| £40,000 | £179 | £1,646 | £1,825 | £2,194 (self-employed pays less) |
| £50,000 | £179 | £2,246 | £2,425 | £2,994 (self-employed pays less) |
| £60,000 | £179 | £2,446 | £2,625 | £3,211 (self-employed pays less) |
| £80,000 | £179 | £2,846 | £3,025 | £3,611 (self-employed pays less) |
Self-employed workers pay less NIC at every profit level above approximately £23,000. The gap widens significantly at higher incomes. However, the comparison is not straightforward — employees also receive employer pension contributions (minimum 3% under auto-enrolment) and other employment protections that have real financial value.
Self-employed Class 4 formula:
- Profits £12,571–£50,270: (profit − £12,570) × 6%
- Profits above £50,270: (£50,270 − £12,570) × 6% + (profit − £50,270) × 2%
- Add Class 2: £179.40/year if profits exceed £12,570
Salary Sacrifice: How Much NIC Can You Save?
Salary sacrifice into a pension is the most effective way to reduce your NIC bill. When you exchange salary for employer pension contributions, neither employee nor employer pays NIC on the sacrificed amount.
The savings differ depending on whether your salary falls below or above the Upper Earnings Limit (£50,270):
Sacrificing below the UEL (8% NIC band)
| Sacrifice Amount | Employee NIC Saved | Employer NIC Saved | Total Saving |
|---|---|---|---|
| £1,000 | £80 | £138 | £218 |
| £2,000 | £160 | £276 | £436 |
| £5,000 | £400 | £690 | £1,090 |
| £10,000 | £800 | £1,380 | £2,180 |
Your income tax saving is additional to this. A basic-rate taxpayer sacrificing £5,000 saves £1,000 in income tax plus £400 in NICs — a combined £1,400 saving before the employer NIC benefit.
Sacrificing above the UEL (2% NIC band)
| Sacrifice Amount | Employee NIC Saved | Employer NIC Saved | Total NIC Saving |
|---|---|---|---|
| £5,000 | £100 | £690 | £790 |
| £10,000 | £200 | £1,380 | £1,580 |
Above the UEL, your personal NIC saving is small (only 2%), but the employer NIC saving remains 13.8%. Many employers pass some or all of their NIC saving back to the employee as an enhanced pension contribution — ask your payroll team whether your scheme does this.
Salary sacrifice and the £100K personal allowance trap
If your salary is between £100,000 and £125,140, salary sacrifice is particularly valuable. Every £2 of salary you sacrifice below £100,000 restores £1 of Personal Allowance, reducing the effective 62% marginal rate back toward 42%. A sacrifice of £25,140 on a £125,140 salary restores the full £12,570 Personal Allowance, saving approximately £15,084 in combined tax and NIC.
Employer National Insurance: The Hidden Cost
Your employer also pays Class 1 NICs at 13.8% on all your earnings above £9,100. This does not come out of your gross salary — it is an additional cost on top. It helps explain why employers are cautious about salary increases and strongly prefer salary sacrifice arrangements (where they save 13.8% on every sacrificed pound).
| Your Salary | Employer NIC | Total Employer Cost |
|---|---|---|
| £20,000 | £1,504 | £21,504 |
| £30,000 | £2,884 | £32,884 |
| £40,000 | £4,264 | £44,264 |
| £50,000 | £5,644 | £55,644 |
| £60,000 | £7,024 | £67,024 |
| £80,000 | £9,784 | £89,784 |
NIC and Your State Pension
Each tax year in which you pay (or are credited with) National Insurance counts as a qualifying year toward your State Pension. You need 35 qualifying years for the full State Pension of £11,502/year (£221.20/week) in 2026/27. You need at least 10 qualifying years to receive anything.
| Qualifying Years | Annual State Pension |
|---|---|
| 10 (minimum) | £3,286 |
| 20 | £6,572 |
| 25 | £8,215 |
| 30 | £9,858 |
| 35 (full) | £11,502 |
You can check your qualifying year count and projected State Pension at gov.uk/check-national-insurance-record. Voluntary Class 3 contributions cost £907.40 per missing year (2026/27) and typically pay back in under 3 years of pension income.
For a full explanation of NI credits, voluntary contributions, and strategies to maximise your State Pension, see the National Insurance Guide.
Key Figures at a Glance
- Primary Threshold: £12,570 — you pay 0% NIC below this
- Main rate: 8% on earnings £12,571–£50,270
- Upper rate: 2% on all earnings above £50,270
- Self-employed main rate: 6% (Class 4) + £179/year (Class 2)
- Employer rate: 13.8% on all your earnings above £9,100
- State Pension: Requires 35 qualifying years; full amount £11,502/year
- Salary sacrifice saving: £80/£1,000 in employee NIC below UEL; employer saves £138/£1,000
Sources
- HM Revenue & Customs. “National Insurance: Introduction.” gov.uk/national-insurance
- HM Revenue & Customs. “National Insurance Rates and Categories.” gov.uk/national-insurance-rates-letters
- HM Revenue & Customs. “Rates and Allowances: National Insurance.” gov.uk/government/publications/rates-and-allowances-national-insurance-contributions
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