Factcard
National Insurance
Class 1 thresholds, employee & employer rates by category letter, plus Class 1A, 1B and 3 contributions for 2026-27.
Headline figures
| Item | 2025-26 | 2026-27 |
|---|---|---|
| Employment Allowance | £10,500 pa | £10,500 pa |
| Class 1A NICs | 15% | 15% |
| Class 1B NICs (PSAs) | 15% | 15% |
| Class 3 Voluntary Contributions | £17.75 pw | £18.40 pw |
Class 1 NIC thresholds 2026-27
| Threshold | Weekly | Monthly | Annual |
|---|---|---|---|
| Lower Earnings Limit (LEL) | £129 | £559 | £6,708 |
| Primary Threshold (PT) | £242 | £1,048 | £12,570 |
| Secondary Threshold (ST) | £96 | £417 | £5,000 |
| Upper Earnings Limit (UEL) | £967 | £4,189 | £50,270 |
| UST (under 21s) | £967 | £4,189 | £50,270 |
| AUST (apprentices under 25) | £967 | £4,189 | £50,270 |
| VUST (veterans) | £967 | £4,189 | £50,270 |
| FUST (Freeport) | £481 | £2,083 | £25,000 |
| IZUST (Investment Zone) | £481 | £2,083 | £25,000 |
What this means: Use the secondary threshold (£5,000 pa) to plan employer NIC budgets — it's well below the primary threshold, so employers pay sooner than employees do.
Employee (primary) rates 2026-27
| Category | Up to LEL | LEL → PT | PT → UEL | Above UEL |
|---|---|---|---|---|
| A, F, H, M, N, V | Nil | 0% | 8% | 2% |
| D, J, L, Z | Nil | 0% | 2% | 2% |
| B, E, I | Nil | 0% | 1.85% | 2% |
| C, K, S | Nil | Nil | Nil | Nil |
Employer (secondary) rates 2026-27
| Category | Up to ST | ST → LEL | LEL → FUST/IZUST | FUST/IZUST → UEL | Above UEL |
|---|---|---|---|---|---|
| A, B, C, J | Nil | 15% | 15% | 15% | 15% |
| H, M, Z | Nil | 0% | 0% | 0% | 15% |
| V | Nil | 0% | 0% | 0% | 15% |
| F, I, L, S, D, E, K, N | Nil | 0% | 0% | 15% | 15% |
What this means: The headline employer rate stays at 15%. Watch the under-21, apprentice-under-25 and veteran reliefs — those zero-rates only apply up to the UST/AUST/VUST.
Category letter definitions
A (standard), B (reduced), C (State Pension age), D (deferment investment zone), E (reduced investment zone), F (standard freeport), H (apprentice under 25), I (reduced freeport), J (deferment), K (State Pension investment zone), L (deferment freeport), M (standard under 21), N (standard investment zone), S (State Pension age freeport), V (standard veteran), Z (deferment under 21)
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