National InsuranceAug 18, 2025
What are the employee National Insurance rates for 2024/25?
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For the 2024/25 tax year, employees pay Class 1 National Insurance contributions (NICs) on their earnings. The rates were reduced in January 2024 and again in April 2024.
Employee Class 1 NIC rates for 2024/25:
| Earnings Band | Weekly | Annual | Rate |
|---|---|---|---|
| Below Primary Threshold | Up to £242/week | Up to £12,570/year | 0% |
| Primary Threshold to Upper Earnings Limit | £242 to £967/week | £12,570 to £50,270/year | 8% |
| Above Upper Earnings Limit | Over £967/week | Over £50,270/year | 2% |
Key points:
- You start paying NI at £12,570 per year (aligned with the Personal Allowance).
- The main rate is 8%, which was reduced from 10% in April 2024.
- Earnings above £50,270 are charged at a reduced rate of 2%.
- Your employer also pays NI on your earnings at 13.8% above the Secondary Threshold of £9,100 per year, but this does not come out of your pay.
Example calculation:
If you earn £35,000 per year, your employee NI would be:
- First £12,570: no NI
- £12,570 to £35,000 = £22,430 at 8% = £1,794.40 per year
National Insurance contributions count towards your State Pension entitlement and eligibility for certain benefits such as Jobseeker's Allowance and Maternity Allowance. You stop paying NI when you reach State Pension age, even if you continue working.
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Disclaimer: This information is for general educational purposes and is not professional tax advice. Tax situations vary. Consult a qualified tax professional for advice specific to your circumstances.