National Insurance 2026/27: employee rates explained
National Insurance is separate from Income Tax. For most employees, Class 1 National Insurance is deducted through payroll based on pay in each pay period.
Employee Class 1 rates
| Monthly pay | 2026/27 employee rate |
|---|---|
| Up to £1,048 | 0% for standard employee contributions |
| £1,048 to £4,189 | 8% |
| Above £4,189 | 2% |
GOV.UK also gives weekly thresholds of £242 and £967. Netly Pay annualises the monthly thresholds for its annual estimate, so a real payslip can differ slightly because NI is normally calculated per pay period.
Worked example: £50,000
On a steady £50,000 annual salary, most earnings above the annualised primary threshold fall in the 8% band. Earnings above the upper threshold are charged at 2%. The calculator shows NI separately from Income Tax so you can see the two deductions rather than treating them as one tax rate.
Bonuses and uneven pay
Because employee NI operates by pay period, a large one-off bonus can produce a different deduction pattern from simply dividing an annual figure by twelve. Netly Pay is designed for planning and comparison, not for reproducing every payroll run to the penny.
Source
Why an annual estimate can differ from a payslip
Employee Class 1 National Insurance is normally calculated for each pay period. Netly Pay annualises the standard monthly Category A thresholds to give a useful annual comparison, but payroll can differ when pay is uneven, you start or leave a job during the year, you are a company director, or a different NI category applies.
For 2026/27, a standard Category A employee pays 8% on earnings between £1,048 and £4,189 a month and 2% above £4,189. A large bonus can therefore produce a different-looking NI deduction in that particular month.