National Insurance Calculator
🏠 Free ToolCalculate your 2024/25 employee and employer National Insurance contributions with detailed annual, monthly, and weekly breakdown.
| Type | Annual | Monthly | Weekly |
|---|---|---|---|
| Employee NI | £2,994.40 | £249.53 | £57.58 |
| Employer NI | £5,644.20 | £470.35 | £108.54 |
| Total NI | £8,638.60 | £719.88 | £166.13 |
How it Works
National Insurance is a UK payroll tax that funds state benefits and the NHS. Unlike income tax, NI has separate rates for employees and employers, and both must be understood when evaluating the true cost of employment. For the 2024/25 tax year, the employee main rate is 8% and the employer rate is 13.8%.
Employee NI is calculated on earnings above the Primary Threshold of £12,570 per year. Between this threshold and the Upper Earnings Limit of £50,270, you pay 8%. Above the UEL, the rate drops to 2%. This structure means NI is effectively regressive — higher earners pay a lower percentage overall.
Employer NI is often overlooked in salary discussions, but it represents a significant additional cost. At 13.8% on all earnings above £9,100, an employee earning £50,000 costs their employer an additional £5,644 in NI alone. This is why salary sacrifice pension schemes are popular — they reduce both employee and employer NI liability.
Use this calculator to understand the full NI picture for any salary level, including the total cost to the employer and a breakdown by pay period.
Frequently Asked Questions
What are the employee NI rates for 2024/25?
Employees pay 8% on earnings between £12,570 (Primary Threshold) and £50,270 (Upper Earnings Limit), and 2% on all earnings above £50,270.
What does the employer pay in NI?
Employers pay 13.8% on all employee earnings above the Secondary Threshold of £9,100. There is no upper limit on employer NI contributions.
Why is the employer NI threshold different from the employee threshold?
The employee Primary Threshold (£12,570) is aligned with the Personal Allowance to simplify the system, but the employer Secondary Threshold (£9,100) is set independently and is typically lower, meaning employers start paying NI on lower earnings.
Do I pay NI if I'm self-employed?
Self-employed individuals pay Class 2 NI (a flat weekly rate of £3.45 if profits exceed £12,570) and Class 4 NI (8% on profits between £12,570 and £50,270, and 2% above). This calculator covers Class 1 contributions for employed workers only.
What does National Insurance pay for?
NI contributions fund the State Pension, Maternity Allowance, Bereavement Support Payment, and contribute to the NHS. You need at least 35 qualifying years of NI contributions to receive the full new State Pension.