The table letter tells employers how much National Insurance an individual needs to contribute – different categories and rates apply as per the list below:
In order for umbrella employers to run their payroll they need to work out the National Insurance that you and they need to contribute. To do this, they use a table letter.
Most employees have category letter A on their payslip. This means that for each year from 6th April 2025, Employer National Insurance and Employees National Insurance is charged on amounts above the primary / secondary thresholds at 15% and 8% respectively. Amounts that come in above the upper earnings limit are capped at 2% for employees.
Employee National Insurance rates
This table shows how much employers deduct from employees’ pay from 6 April 2026 to 5 April 2027:
Employee (primary) contribution rates
Deduct primary contributions (employee’s National Insurance) from your employees’ pay through PAYE.
National Insurance category letter
Earnings at or above lower earnings limit up to and including primary threshold
Earnings above primary threshold up to and including upper earnings limit
Balance of earnings above upper earnings limit
A
0%
8%
2%
B
0%
1.85%
2%
C
nil
nil
nil
D (Investment Zone — deferment)
0%
2%
2%
E (Investment Zone — married women and widows reduced rate)
0%
1.85%
2%
F (Freeport)
0%
8%
2%
H (apprentice under 25)
0%
8%
2%
I (Freeport — married women and widows reduced rate)
0%
1.85%
2%
J
0%
2%
2%
K (Investment Zone — state pensioner)
nil
nil
nil
L (Freeport — deferment)
0%
2%
2%
M (under 21)
0%
8%
2%
N (Investment Zone)
0%
8%
2%
S (Freeport — state pensioner)
nil
nil
nil
V (veteran)
0%
8%
2%
Z (under 21 — deferment)
0%
2%
2%
Employer (secondary) contribution rates
You pay secondary contributions (employer’s National Insurance) to HMRC as part of your PAYE bill.
National Insurance category letter
Earnings above secondary threshold up to and including lower earnings limit
Earnings above lower earnings limit up to and including Freeport and Investment Zone upper secondary thresholds
Earnings above Freeport and Investment Zone upper secondary thresholds up to and including upper earnings limit, upper secondary thresholds for under 21s, apprentices and veterans
Balance of earnings above upper earnings limit, upper secondary thresholds for under 21s, apprentices and veterans
A
15%
15%
15%
15%
B
15%
15%
15%
15%
C
15%
15%
15%
15%
D (Investment Zone — deferment)
0%
0%
15%
15%
E (Investment Zone — married women and widows reduced rate)
0%
0%
15%
15%
F (Freeport)
0%
0%
15%
15%
H (apprentice under 25)
0%
0%
0%
15%
I (Freeport — married women and widows reduced rate)
0%
0%
15%
15%
J
15%
15%
15%
15%
K (Investment Zone — state pensioner)
0%
0%
15%
15%
L (Freeport — deferment)
0%
0%
15%
15%
M (under 21)
0%
0%
0%
15%
N (Investment Zone)
0%
0%
15%
15%
S (Freeport — state pensioner)
0%
0%
15%
15%
V (veteran)
0%
0%
0%
15%
Z (under 21 — deferment)
0%
0%
0%
15%