National Insurance rates and categories
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1. 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.
2. Category letters
Employers use an employee’s National Insurance category letter when they run payroll to work out how much they both need to contribute.
Most employees have category letter A. Employees can find their category letter on their payslip.
| Category letter | Employee group |
|---|---|
| A | All employees apart from those in groups B, C, H, J, M, V and Z in this table |
| B | Married women and widows entitled to pay reduced National Insurance |
| C | Employees over the State Pension age |
| H | Apprentices under 25 |
| J | Employees who can defer National Insurance because they’re already paying it in another job |
| M | Employees under 21 |
| V | Employees who are working in their first job since leaving the armed forces (veterans) |
| Z | Employees under 21 who can defer National Insurance because they’re already paying it in another job |
Category letters for employees who work in freeports
Employers use category letters F, I, L and S for employees who work in a freeport.
| Category letter | Employee group |
|---|---|
| F | All employees who work in freeports, apart from those in groups I, L, and S in this table |
| I | Married women and widows who work in freeports and are entitled to pay reduced National Insurance |
| L | Employees who work in freeports and can defer National Insurance because they’re already paying it in another job |
| S | Employees who work in freeports and are over the State Pension age |
Category letters for employees who work in investment zones
Employers use category letters N, E, D and K for employees who work in an investment zone.
| Category letter | Employee group |
|---|---|
| N | All employees who work in investment zones, apart from those in groups E, D and K in this table |
| E | Married women and widows who work in investment zones and are entitled to pay reduced National Insurance |
| D | Employees who work in investment zones and can defer National Insurance because they’re already paying it in another job |
| K | Employees who work in investment zones and are over State Pension age |
Category letter X
Employers use category letter X for employees who do not have to pay National Insurance, for example because they’re under 16.
Mariners and deep sea fishermen
HMRC has detailed information on National Insurance for mariners and deep sea fishermen.