Employee NIC Calculator

The employee NIC calculator allows you to calculate employee National Insurance Contributions (NICs)
Take home after tax
YearlyMonthlyWeeklyDaily
Salary£0.00£0.00£0.00£0.00
Primary Treshold£0.00£0.00£0.00£0.00
Secondary Treshold£0.00£0.00£0.00£0.00
Upper Earnings Limit£0.00£0.00£0.00£0.00
Net Liability£0.00£0.00£0.00£0.00
Take-home£0.00£0.00£0.00£0.00
How does this calculator work?
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    Enter your annual gross salary including other benefits like overtime or bonus.

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    Our calculator will compute your yearly, monthly, weekly and daily employee NICs along with the breakdown.

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Related FAQ's

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Employees must begin paying employee Class 1 NICs once earnings reach the primary threshold. The primary threshold for 2021/22 is £184 per week (£797 per month; £9,568 per year).

Contributions are paid at the primary rate of 12 per cent on earnings between the primary threshold and the upper earnings limit.

The upper earnings limit for 2021/22 is £967 per week (£4,189 per month; £50,270 per year).

Contributions on earnings above the upper earnings limit are subject to a 2% NI.

Employee NIC Calculator

Understanding how national insurance contribution works might be challenging, especially if you're starting in the workplace. Knowing how national insurance contribution functions will help you budget and determine if you've paid the correct amount.

The good thing is, you don't have to do these workings and calculations. Your employer will do these calculations, deduct the amount from your salary and pays the same to HMRC.

Paying National Insurance (NI) is mandatory whether you are employed or self-employed. You are only exempt from paying National Insurance in certain circumstances (NI).

What are National insurance contributions?

National insurance is a government programme that mandates residents and workers in the United Kingdom to make regular payments toward benefits.

Employees and employers in the United Kingdom pay NICs to fund the NHS, government benefits programmes such as state pensions. NI contributions are payable through Payroll deductions.

Your job status, income, and whether or not you have any gaps in your National Insurance determine the type of National Insurance contribution (NIC) you pay.

From April 2022, NICs will increase by 1.25%. The change will apply to:

National Insurance (NI) Calculation for Employees and Self-Employed

Both employees and self-employed workers must pay National Insurance contributions (NICs). You calculate NIC on your gross earnings as an employee or your business profits if self-employed.

You pay NICs on expenses and benefits in kind paid by your employer.

Employees

Employees pay three of the six types of National Insurance contributions. They are as follows:

Class 1 NICs: If you are employed, you must pay Class 1 NICs, deducted automatically through PAYE. Class 1 contributions are made on salary, commissions, bonuses, overtime, sick pay, maternity and paternity pay are all computed based on gross earnings over the threshold (before taxes and pension deductions) for that year.

Class 3 — These are voluntary payments made by those who want to maintain their state pension entitlement but do not make enough earned or self-employed contributions. They can also be payable by persons who are unemployed or work in another country.

Class 3A - In October 2015, a new form of voluntary contribution was established. This one-time lump sum payment assists persons who reached state pension age on or before April 6, 2016, to transition to the new single-tier state pension.

Company directors are classified as employees and must pay National Insurance on earnings from salaries and bonuses that exceed a specific amount. Contributions are calculated based on their annual earnings instead of their pay period earnings.

Self-Employed

Self-employed people often pay two types of NI contributions: Class 2 and Class 4:

Class 2 — Those self-employed pay Class 2 payments on profits (earnings less allowable expenses) above a specific threshold. The majority of people include the donations in their self-assessment tax bill. The payment is only a few pounds every week.

Class 4 — When a self-employed person's profits reach a specific amount, they must pay Class 4 contributions. Class 4 contributions are now 9% of taxable earnings within a particular threshold, reducing to 2% of profits above that threshold.

What types of earnings are subject to NICs?

Individuals aged 16 and above must pay NICs on their income. Employee and self-employed NICs are not payable by people over the state pension age, although employer NICs are still required on their earnings.

Earnings and benefits from employment and profits from self-employment are taxable. 

Experlu's National Insurance contributions calculator

Employees and employers who have an NI number and are over 16 years old must pay National Insurance contributions. They are paid at different rates depending on their classes (Class 1, Class 2, Class 3 or Class 4). Several brackets/classes are used to calculate how much National Insurance is paid for employee NIC calculation.

Alternatively, you can use Experlu's employee NIC calculator or self-employed NI calculator to determine how much National Insurance is payable.

For Employees

Employees must begin paying employee Class 1 NICs once earnings reach the primary threshold. The primary threshold for 2021/22 is £184 per week (£797 per month; £9,568 per year).

Contributions are paid at the primary rate of 12 per cent on earnings between the primary threshold and the upper earnings limit.

The upper earnings limit for 2021/22 is £967 per week (£4,189 per month; £50,270 per year).

Contributions on earnings above the upper earnings limit are subject to a 2% tax.

For self-employed

If their profits surpass the necessary thresholds, self-employed people pay two types of contributions: Class 2 and Class 4.

For 2021/22, Class 2 contributions are payable at £3.05 per week (unchanged from 2020/21) on earnings above the limited profits threshold, which is £6,515 for 2021/22.

Class 2 contributions are voluntarily payable to maintain the earner's contribution record if earnings are below the modest profits threshold.

Class 4 contributions are payable at 9% on profits between the lower profits limit of £9,568 and the upper profits limit of £50,270 and at an extra rate of 2% on earnings above the upper profits threshold of £50,270 for 2021.