National Insurance
(NI)
National Insurance contributions (NICs) are payments made by employees, employers, and the self-employed to qualify for certain state benefits including the State Pension, Statutory Sick Pay, and Maternity Allowance. Employees pay Class 1 NICs; employers pay employer Class 1 NICs on top; the self-employed pay Class 2 and Class 4 NICs. The number of qualifying years of contributions affects State Pension entitlement.
National Insurance contributions (NICs) fund the contributory benefit system, including the State Pension (requiring 35 qualifying years for the full new State Pension of £230.25/week in 2025/26), Statutory Sick Pay, and Maternity Allowance. Class 1 NICs are paid by employees on earnings above the Primary Threshold (£12,570/year in 2025/26) at 8%, and by employers at 13.8% above the Secondary Threshold. Class 2 NICs (£3.45/week) and Class 4 NICs (6% on profits £12,570–£50,270) apply to the self-employed. Gaps in a NI record can be voluntary-filled for up to 6 years (or longer in some cases) by paying voluntary Class 3 NICs (£17.45/week in 2025/26). Check your NI record and State Pension forecast via the Government Gateway. NICs are administered by HMRC separately from Income Tax.