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    National Insurance explained

    What National Insurance is, who pays it, and what it buys you.

    By the Happy Wallets team·Updated June 2026·4 min read

    The basics

    National Insurance is a tax on earnings that builds your entitlement to certain benefits, including the State Pension. Employees, the self-employed and employers all pay different classes.

    Why it matters

    Your NI record determines your State Pension. Gaps can sometimes be filled with voluntary contributions — worth checking before retirement.

    Frequently asked questions

    What are the current rates?+
    NI rates and thresholds change — check the latest on GOV.UK. The take-home pay calculator estimates the employee portion.
    Accounts are coming soon — the site is in build