National Insurance Calculator
See both sides of National Insurance in one place: what you pay as an employee, and what it actually costs your employer — including the special categories that cut employer NI to zero for apprentices, under-21s and veterans.
Start here
How to use this calculator
Enter the annual salary and pick the National Insurance category that applies, then compare what it means for the employee and the employer.
Enter the annual salary
The gross yearly salary before any deductions.
Pick the NI category
Most employees are Category A. Apprentices under 25, under-21s and veterans in their first year often qualify for much lower employer NI — select the category that applies.
Compare the categories below
The table further down shows employer NI for every category at this salary, so you can see exactly how much a category changes the cost.
Why it matters
Two different National Insurance bills
National Insurance isn’t just one deduction — it’s charged twice on the same salary, to two different people. As an employee, you pay employee National Insurance: 8% of everything you earn between £12,570 and £50,270 a year, and 2% above that. Separately, your employer pays employer National Insurance: 15% on your salary above their own threshold, which depends on your NI category. Employer NI never comes out of your payslip — it’s an extra cost your employer carries on top of your salary — but it directly affects how much a business can afford to pay, and it’s why certain categories of worker are cheaper for employers to hire.
The relief categories
Why some categories pay £0 employer NI
For most employees (Category A), employer NI starts at just £5,000 a year — so it applies to almost the whole salary. But the government offers three relief categories where employer NI doesn’t start until £50,270 a year, the same as the Upper Earnings Limit:
- Category H — Apprentices under 25 on an approved apprenticeship
- Category M — Employees under 21
- Category V — Veterans, in their first year of civilian employment after leaving the armed forces
For anyone in these categories earning under £50,270, the employer pays £0 employer National Insurance — a saving worth thousands of pounds a year to the business, even though the employee’s own take-home pay is unaffected. A fourth category, Category F, gives a similar (smaller) break for employees working in a Freeport or Investment Zone, with employer NI starting at £25,000 instead of £5,000.
Compare categories
Employer NI by category, at this salary
Based on the salary you entered above, here’s what employer National Insurance looks like under every category. Your own take-home pay is identical in every row — only the employer’s cost changes.
| Category | Employer NI threshold | Employer NI on this salary | Saving vs Category A |
|---|
Questions
Common questions
Does my NI category change how much I take home?
No. Employee National Insurance — the 8%/2% you pay — is exactly the same regardless of your category. Only employer National Insurance changes, and that’s a cost to your employer, not something deducted from your pay.
How do I know my NI category?
Your NI category is set by your employer based on your circumstances (age, apprenticeship status, veteran status) and shown on your payslip, usually as a single letter. Category A is the default for most employees. If you think you should be on a relief category and aren’t, ask your employer’s payroll team.
What is a “qualifying year” for the State Pension?
Even if your salary is below the £12,570 threshold where employee NI actually becomes payable, you can still build up a qualifying year toward the State Pension as long as you earn at least the Lower Earnings Limit (£6,708 a year for 2026/27). Below that, the year doesn’t count unless you make voluntary contributions.
Is employer National Insurance the same everywhere in the UK?
Yes — National Insurance rates and thresholds are set UK-wide by HMRC and don’t vary between England, Scotland, Wales or Northern Ireland (unlike Income Tax, where Scotland sets its own bands). See our Take-Home Pay Calculator for how Income Tax and NI combine in each nation.
Does this include the Employment Allowance?
No — this calculator shows employer NI per employee. Many small businesses can additionally claim the Employment Allowance, which reduces their total annual employer NI bill across all employees by a set amount. That’s a business-level allowance, not a per-employee calculation, so it isn’t included here.
Where these figures come from. National Insurance rates, thresholds and category rules are taken from gov.uk’s official rates and thresholds for employers, 2026/27 tax year. All figures were checked on 23 September 2026.
Rates and thresholds for employers 2026/27 · National Insurance overview
How we calculate · Editorial policy. This is general information, not tax or financial advice.