Employee NI (National Insurance)
Class 1 primary National Insurance deducted from an umbrella worker's gross salary — 8% between £12,570–£50,270, 2% above.
Employee NI (Class 1 primary contributions) is deducted from your gross salary after income tax. In 2026/27 the rates are: 8% on earnings between the Primary Threshold (£12,570/year) and the Upper Earnings Limit (£50,270/year), and 2% on earnings above £50,270.
Unlike employer NI, employee NI is deducted from gross salary — not from the assignment rate. It reduces your net take-home but does not affect the gross salary figure.
Employee NI contributions fund the National Insurance fund — which underpins State Pension entitlement, among other benefits. Each year you pay sufficient NI counts as a qualifying year toward your State Pension.
Pension contributions (employee portion) reduce gross salary before NI is calculated, providing a marginal NI saving alongside income tax relief.