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National Insurance rates

National Insurance rates differ depending on whether you're an employee or work for yourself. Here, we run though how much you'll pay, depending on your employment status.  

In this article
Do I pay National Insurance?   National Insurance rates 2019-20 National Insurance rates 2018-19
National Insurance calculator 2019-20 Self-employed National Insurance rates Voluntary 'Class 3' National Insurance rates The 'married woman's stamp'

Do I pay National Insurance?

National Insurance has to be paid by both employed and self-employed workers. 

Your National Insurance contributions depend on your employment status and how much you earn. Not everybody has to pay National Insurance, but contributions count towards your state pension and other benefits.

If you have an employer, you'll pay Class 1 National Insurance contributions. This also includes if you're self-employed but work for an employer - it's your employer's job to pay your National Insurance through your payslips, as well as their own employer contributions of 13.8%.

It's worth finding out if you're exempt from paying National Insurance. If you don't have to pay National Insurance you might be eligible for National Insurance credits, or you can choose to make voluntary contributions. 

 

 

National Insurance rates 2019-20

The amount of National Insurance you pay is worked out in a similar way to income tax. 

National Insurance is calculated on gross earnings (before tax or pension deductions) above an 'earnings threshold'.

Your employer will deduct Class 1 National Insurance contributions from your:

  • salary
  • commission or bonuses
  • overtime
  • sick pay
  • maternity, paternity and adoption pay.

For 2019-20, the Class 1 National Insurance threshold is be £8,632 a year. If you earn less than this amount you'll pay no National Insurance contributions. 

If you earn more, you'll pay 12% of your earnings between £8,632 and £50,000. You'll pay 2% on any earnings above £50,000.

The table below shows 2019-20 rates for Classes 1, 2, 3 and 4.

Employed
How much you earn Class 1 rate
Less than £8,632 0%
£8,632-£50,000 12%
More than £50,000 2%
Self-employed
How much you earn Class 2 and 4 rates
Less than £6,365 0%
£6,365-£8,632 £3 per week
£8,632-£50,000 9% + £3 per week
More than £50,000 2% + £3 per week
Unemployed or exempt from NI
Type of contributions Class 3 voluntary contributions
Amount £15 per week

 

National Insurance rates 2018-19

    or 2018-19, the National Insurance threshold was £8,424 a year. If your earnings are below the earnings threshold, you pay no National Insurance contributions.

    If you earn above the threshold, you pay 12% of your earnings between £8,424 and £46,350.

    On anything you earn above £46,350 a year, you pay National Insurance at 2%.

    Employed
    How much you earn Class 1 rate
    Less than £8,424 0%
    £8,424 - £46,350 12%
    More than £46,350 2%
    Self-employed
    How much you earn Class 2 and 4 rates
    Less than £6,205 0%
    £6,205 to £8,424 £2.95 per week
    £8,424 - £46,350 9% + £2.95 per week
    More than £46,350 2% + £2.95 per week
    Unemployed or exempt from NI
    Type of contributions  Class 3 voluntary contributions
    Amount £14.65 per week

    National Insurance calculator 2019-20

    Use our National Insurance calculator for 2019-20 to discover how much you'll pay this year.

    You can also see what you would owe for previous years, based on your income. 

    Self-employed National Insurance rates

    If you're self-employed, you could pay two types of National Insurance. 

    You pay Class 2 contributions if you're self-employed, which are a flat rate of £3 per week in 2019-20, and was £2.95 a week for 2018-19. 

    On profits (earnings minus allowable expenses) below a certain limit you can elect not to pay Class 2 contributions, so you pay no National Insurance at all - that threshold is £6,365 in 2019-20 and £6,205 for 2018-19.

    If your profits are above £8,424 in 2018-19, you must pay Class 4 contributions as well as Class 2 contributions. 

    Class 4 contributions are at 9%, to be paid on profits between £8,632-£50,000 in 2019-20. Earnings over £50,000 will require a 2% contribution.

    In 2018-19, Class 4 contributions were 9% of taxable profits between £8,424 and £46,350. On profits over £46,350, Class 4 contributions are 2% of profits. 

    Find out more: Tax for the self-employed – this comprehensive guide explains which taxes you are likely to have to pay

    • Get a head start on your 2018-19 tax return with the Which? Tax Calculator. Tot up your bill, get jargon-free, money-saving tips and submit your return direct to HMRC.

    Voluntary 'Class 3' National Insurance rates

    If you're missing any National Insurance contributions, you can fill in gaps by paying Class 3 'voluntary' contributions. 

    You can only pay voluntary contributions if:

    • you're not working
    • you're not liable for, or you're exempt from, Class 1 or Class 2 contributions
    • your contributions for a specific year aren't enough to count towards state pension entitlement (if you earn less than £157 a week), or
    • you live abroad

    In 2019-20, Class 3 contributions are £15 a week.

    Find out more: making voluntary National Insurance contributions

    The 'married woman's stamp'

    Until 1977, married women could opt to make National Insurance contributions at a reduced rate. They stopped building up entitlement to state pension in their own right and instead relied on their husband's National Insurance contributions record. 

    This was known as the 'married woman's stamp'.

    Women who took this option can continue to make reduced National Insurance contributions or pay at the full rate and build up individual pension entitlement. With reduced contributions, their maximum entitlement is currently 60% of basic state pension. 

    Since 2016, any women in this position who have yet to reach state pension age will no longer be eligible. Their pension entitlement will depend instead on the number of qualifying years' National Insurance contributions they have made in their own right. The minimum required to get any state pension is 10 years.      

    Find out more about the state pension in our expert guide

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