Legislation
Class 1 National Insurance Rates 2025-26
Date
Effective FY 25-26
Summary
If you employ staff, you’ll need to pay Class 1 National Insurance – both your employer contributions and those you deduct from employees’ pay.
These payments are based on earnings and help fund state benefits like the State Pensions, Parental Leave, and Jobseeker’s Allowance.
Below you’ll find the latest thresholds and rates for the current tax year.
Employee (primary) contribution rates
| National Insurance category letter | Earnings above PT up to and including UEL | Balance of earnings above UEL |
|---|---|---|
| A - Standard rate | 8% | 2% |
| B - Reduced rate | 1.85% | 2% |
| C - Above SPA | Nil | Nil |
| F - Freeport standard rate | 8% | 2% |
| H - Apprentice under 25 | 8% | 2% |
| I - Freeport reduced rate | 1.85% | 2% |
| J - Deferment | 2% | 2% |
| L - Freeport deferment | 2% | 2% |
| M - Under 21 | 8% | 2% |
| S - Freeport above SPA | Nil | Nil |
| V - Veteran | 8% | 2% |
| Z - Deferment under 21 | 2% | 2% |
Employer (secondary) contribution rates
| Contribution Table Letter | Earnings below LEL | Earnings at or above the LEL up to and including the ST | Earnings above the ST up to and including the FUST | Earnings above the FUST up to and including UST/AUST/VUST | Balance of earnings above UST/AUST/VUST |
|---|---|---|---|---|---|
| A - Standard Rate | NIL | 0 | 15% | 15% | 15% |
| B - Reduced Rate | NIL | 0 | 15% | 15% | 15% |
| C - Over State Pensions Age | NIL | 0 | 15% | 15% | 15% |
| F - Freeport Standard Rate | NIL | 0 | 0 | 15% | 15% |
| H - Apprentice under 25 | NIL | 0 | 0 | 0 | 15% |
| I - Freeport Reduced Rate | NIL | 0 | 0 | 15% | 15% |
| J - Deferment | NIL | 0 | 15% | 15% | 15% |
| L - Freeport Deferment | NIL | 0 | 0 | 15% | 15% |
| M - Under 21 | NIL | 0 | 0 | 0 | 15% |
| S - Freeport Above SPA | NIL | 0 | 0 | 15% | 15% |
| V - Veteran | NIL | 0 | 0 | 0 | 15% |
| Z - Deferment under 21 | NIL | 0 | 0 | 0 | 15% |
Employers pay Class 1A and 1B National Insurance on expenses and benefits they give to their employees.
Class 1A NICs rate: 15%
Class 1B NICs rate: 15%
Tax fact card 2025 – 2026
Download your FREE tax fact card to find out the latest changes to payroll tax & legislation from April 2025. This PDF card includes all the key payroll rates and dates that…