National Insurance rates and categories

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Contribution rates

An employee’s Class 1 National Insurance is made up of contributions:

  • deducted from their pay (employee’s National Insurance)
  • paid by their employer (employer’s National Insurance)

The amounts deducted and paid depend on:

  • the employee’s National Insurance category letter
  • how much of the employee’s earnings falls within each band

Employee National Insurance rates

This table shows how much employers deduct from employees’ pay from 6 April 2024 to 5 April 2025.

You can see past employee National Insurance rates.

Category letter £123 to £242 (£533 to £1,048 a month) £242.01 to £967 (£1,048.01 to £4,189 a month) Over £967 a week (£4,189 a month)
A 0% 8% 2%  
B 0% 1.85% 2%  
C N/A N/A N/A  
D 0% 2% 2%  
E 0% 1.85% 2%  
F 0% 8% 2%  
H 0% 8% 2%  
I 0% 1.85% 2%  
J 0% 2% 2%  
K N/A N/A N/A  
L 0% 2% 2%  
M 0% 8% 2%  
N 0% 8% 2%  
S N/A N/A N/A  
V 0% 8% 2%  
Z 0% 2% 2%  

Example

If you’re in category A and you earn £1,000 in a week you’ll pay: 

  • nothing on the first £242
  • 8% (£58) on your earnings between £242.01 and £967
  • 2% (£0.66) on the remaining earnings above £967

This means your National Insurance payment will be £58.66 for the week.

Employer National Insurance rates

This table shows how much employers pay towards employees’ National Insurance from 6 April 2024 to 5 April 2025.

Category letter £123 to £175 (£533 to £758 a month) £175.01 to £481 (£758.01 to £2,083 a month) £481.01 to £967 (£2,083.01 to £4,189 a month) Over £967 a week (£4,189 a month)
A 0% 13.8% 13.8% 13.8%
B 0% 13.8% 13.8% 13.8%
C 0% 13.8% 13.8% 13.8%
D 0% 0% 13.8% 13.8%
E  0% 0% 13.8% 13.8%
F 0% 0% 13.8% 13.8%
H 0% 0% 0% 13.8%
I 0% 0% 13.8% 13.8%
J 0% 13.8% 13.8% 13.8%
K 0% 0% 13.8% 13.8%
L 0% 0% 13.8% 13.8%
M 0% 0% 0% 13.8%
N 0% 0% 13.8% 13.8%
S 0% 0% 13.8% 13.8%
V 0% 0% 0% 13.8%
Z 0% 0% 0% 13.8%

HM Revenue and Customs (HMRC) has full rates and thresholds for tax years:

You can also use calculators and tables to check employees’ National Insurance.

Class 1A and Class 1B rates

Employers pay Class 1A and 1B National Insurance on expenses and benefits they give to their employees. The rate from 6 April 2024 to 5 April 2025 on expenses and benefits is 13.8%.

They must also pay Class 1A on some other lump sum payments, for example redundancy payments. HMRC has detailed guidance on all Class 1A and Class 1B rates.

View a printable version of the whole guide

Part of Get your business ready to employ staff: step by step

  1. Step 1 Decide what type of employee you need

    1. Check whether you need full time or part time staff
    2. Check the different types of employment status

  2. and Check you can afford to take on employees

    1. Check how much the National Minimum Wage is
    2. You are currently viewing: Find out how much National Insurance you need to pay for your employees
    3. Check how much sick pay your employees are eligible for
    4. Check how much you need to pay towards your employee's pension
    5. Check how much Maternity Leave you need to pay your employees
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  3. Step 2 Make your workplace safe and accessible for employees

    1. Prevent discrimination
    2. Make your workplace accessible for employees with disabilities or health conditions
    3. Keep employee information and data safe
    4. Fire safety
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    You also need to make checks when you recruit and employ someone.

    1. Find out what you need to check when you employ someone

  4. Step 3 Register as an employer and set up PAYE

    You need to register with HMRC so you can pay tax and national insurance for your employees.

    1. Register as an employer and set up PAYE
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  5. Step 4 Check your responsibilities around workplace pensions

    1. Understand your pension responsibilities as an employer

  6. Step 5 Get Employers' Liability insurance

    1. Find out about Employers' Liability insurance

  7. Step 6 Recruit and employ staff

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