National Insurance Calculator
Work out your National Insurance contributions with our free calculator. Updated for April 2024 with the new 8% rate, showing both employee and employer contributions.
2024/25 NI Rates (from 6 April)
Enter your salary to calculate NI
Understanding National Insurance
National Insurance is a tax that funds state benefits and the NHS. As an employee, you pay Class 1 NI which is automatically deducted from your salary through PAYE.
2024/25 Employee NI Rates (Class 1)
| Earnings Band | Weekly | Annual | Rate |
|---|---|---|---|
| Below Primary Threshold | Up to £242 | Up to £12,570 | 0% |
| Primary to Upper Earnings | £242 - £967 | £12,570 - £50,270 | 8% |
| Above Upper Earnings Limit | Over £967 | Over £50,270 | 2% |
NI Rate Changes in 2024
The government reduced the main employee NI rate twice in 2024:
- January 2024: Reduced from 12% to 10%
- April 2024: Reduced from 10% to 8%
These changes mean employees keep more of their earnings compared to previous years.
Calculation Methodology
This calculator uses official HMRC PAYE algorithms for 2026/27. Rates sourced directly from gov.uk. Reviewed by a qualified ICAEW-regulated accountant.
Official Sources
Important: Results are estimates based on standard HMRC rules. Your actual tax may differ based on your specific tax code, benefits, or HMRC adjustments. Always verify with your employer or a qualified accountant.
Frequently Asked Questions
What is National Insurance?
National Insurance (NI) is a tax on earnings and self-employment profits. It funds state benefits including the State Pension, NHS, and unemployment benefits. You need to pay NI to qualify for certain state benefits.
What are the NI rates for 2024/25?
From April 2024, employees pay 8% on earnings between £12,570 and £50,270, and 2% on earnings above £50,270. This is a reduction from 10% in 2023/24. Employers pay 13.8% on earnings above £9,100.
When do I start paying National Insurance?
You start paying NI when you earn above the Primary Threshold of £12,570 per year (£242 per week). However, you start building your NI record from the Lower Earnings Limit of £6,396 per year.
What is employer National Insurance?
Employers pay Class 1 Secondary NI of 13.8% on employee earnings above £9,100 per year. This is in addition to the employee's own NI contributions and is a significant cost for businesses.
Does NI count towards my State Pension?
Yes, paying NI builds your National Insurance record, which determines your State Pension entitlement. You need 35 qualifying years for the full State Pension and at least 10 years to get any State Pension.