What National Insurance is for
National Insurance contributions count towards your entitlement to certain state benefits, including the State Pension. It's collected alongside Income Tax through PAYE, but calculated as a separate deduction with its own rules.
Employee National Insurance
WageOra's calculators use the standard employee Class 1 Category A assumption, which covers most employees. For the 2026/27 tax year: no National Insurance is due on earnings up to £12,570.00 a year; earnings between £12,570.00 and £50,270.00 are charged at 8%; and earnings above £50,270.00 are charged at 2%.
It's separate from your tax code
National Insurance thresholds aren't affected by your tax code. A change to your tax code changes your Income Tax, not your National Insurance.
Employer National Insurance is a different calculation
Employers also pay their own National Insurance on top of what's deducted from your pay. It's not taken from your wages, and it's calculated separately, using its own secondary threshold (£5,000.00 a year for 2026/27) and rate (15%). This guide covers employee National Insurance only. See the Employer Cost Calculator for the employer side.
See the effect on your take-home pay
The Salary Calculator includes employee National Insurance in its take-home pay estimate for the 2026/27 tax year, alongside Income Tax and any pension or student loan deductions. See gross pay vs net pay for how these deductions fit together. Ordinary payroll assesses National Insurance by pay period, while WageOra's figures are an annual planning estimate — see why your payslip can differ from a salary calculator if the two don't match.