Thresholds and Rates April 2025/26

National Minimum Wage rates

	Amount
Aged 21 and above (national living wage rate)	£12.21
Aged 18 to 20 inclusive	£10
Aged under 18 (but above compulsory school leaving age)	£7.55
Apprentices aged under 19	£7.55
Apprentices aged 19 and over, but in the first year of their apprenticeship	£7.55

Tax

For England, Northern Ireland, Scotland and Wales the standard employee personal allowance for the 2025 to 2026 tax year is:

• £242 per week

• £1,048 per month

• £12,570 per year

For England, Northern Ireland and Wales the tax bands are:

PAYE Tax Rate	Rate of Tax	Annual earnings the rate applies to (above the PAYE threshold)
Basic Tax Rate	20%	Up to £37,700
Higher Tax rate	40%	From £37,701 to £125,140
Additional Tax Rate	45%	Above £125,140

For Scotland the tax bands are:

PAYE Tax Rate	Rate of Tax	Annual earnings the rate applies to (above the PAYE threshold)
Starter Tax Rate	19%	Up to £2,827
Basic Tax Rate	20%	From £2,828 to £14,921
Intermediate tax Rate	21%	From £14,922 to £31,092
Higher Tax Rate	42%	From £31,093 to £62,430
Advanced Tax Rate	45%	From £62,431 to £125,140
Top Tax Rate	48%	Above £125,140

National Insurance

Class 1 National Insurance thresholds 2025 to 2026

Lower earnings limit    £125 per week               To qualify for statutory payments such as SMP

£542 per month
£6,500 per year

Primary threshold        £242 per week               Employees start paying NI

£1,048 per month
£12,570 per year

Secondary threshold   £96 per week                  Employer starts paying NI

£417 per month
£5,000 per year

Upper earnings limit    £967 per week               All employees move to the reduced rate

£4,189 per month
£50,270 per year

Employee National Insurance Rates

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%
C	nil	nil	nil
H (apprentice under 25)	0%	8%	2%
J	0%	2%	2%
M (under 21)	0%	8%	2%
V (Veteran)	0%	8%	2%

Employer National Insurance Rates

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%
C	15%	15%	15%	15%
H (apprentice under 25)	0%	0%	0%	15%
J	15%	15%	15%	15%
M (under 21)	0%	0%	0%	15%
V (Veteran)	0%	0%	0%	15%

Statutory Maternity, Paternity, Adoption, Shared Parental, Parental Bereavement and Neonatal Care Pay

Type of payment or recovery	2025 to 2026 rate
Statutory Maternity Pay — weekly rate for first 6 weeks	90% of the employee’s average weekly earnings
Statutory Maternity Pay — weekly rate for remaining weeks	£187.18 or 90% of the employee’s average weekly earnings, whichever is lower
Statutory Paternity Pay (SPP) — weekly rate	£187.18 or 90% of the employee’s average weekly earnings, whichever is lower
Statutory Adoption Pay (SAP) — weekly rate for first 6 weeks	90% of the employee’s average weekly earnings
SAP — weekly rate for remaining weeks	£187.18 or 90% of the employee’s average weekly earnings, whichever is lower
Statutory Shared Parental Pay (ShPP) — weekly rate	£187.18 or 90% of the employee’s average weekly earnings, whichever is lower
Statutory Parental Bereavement Pay (SPBP) — weekly rate	£187.18 or 90% of the employee’s average weekly earnings, whichever is lower
Statutory Neonatal Care Pay (SNCP) — weekly rate	£187.18 or 90% of the employee’s average weekly earnings, whichever is lower
SMP, SPP, ShPP, SAP, SPBP or SNCP — proportion of your payments you can recover from HMRC	92% if your total Class 1 National Insurance (both employee and employer contributions) is above £45,000 for the previous tax year 108.5% if your total Class 1 National Insurance for the previous tax year is £45,000 or lower

Statutory Sick Pay

£118.75 per week

Student loan and postgraduate loan recovery

Rate or threshold	2025 to 2026 rate
Employee earnings threshold for student loan plan 1	£26,065 per year £2,172.08 per month £501.25 per week
Employee earnings threshold for student loan plan 2	£28,470 per year £2,372.50 per month £547.50 per week
Employee earnings threshold for student loan plan 4	£32,745 per year £2,728.75 per month £629.71 per week
Student loan deductions	9%
Employee earnings threshold for postgraduate loan	£21,000 per year £1,750 per month £403.84 per week
Postgraduate loan deductions	6%