How National Insurance Works

National Insurance (NI) is a tax on earnings that funds state benefits including the State Pension and NHS.

Class 1 Employee Contributions 2025/26

• £0 - £12,570: 0% (below threshold)
• £12,571 - £50,270: 8%
• Above £50,270: 2%

What Does NI Pay For?

NI contributions build up your entitlement to certain state benefits including State Pension, Maternity Allowance, and contribution-based Jobseeker's Allowance.