From 6 April 2026, the State Pension age will start rising from 66 to 67 for both men and women. The change is being phased in over two years. As a result, employees born between 6 April 1960 and 5 March 1961 will reach State Pension age at 66 plus a set number of months, rather than on their 66th birthday.
HMRC is urging employers to identify affected staff and confirm each person’s State Pension date using the State Pension age calculator.
When an employee reaches State Pension age, they stop paying National Insurance contributions, but employers still pay Class 1 National Insurance on their earnings. Payroll teams, therefore, need to update NI categories.
For employees in the affected birth range, employers should:
- check the exact State Pension date for each individual
- change the employee’s NI category letter to ‘C’ in payroll software
- apply the change from the first payment date after the employee reaches State Pension age
- issue the relevant category letter to the employee at the right time.
HMRC also reminds employers that this is treated as a mid-year category letter change. You must keep reporting year-to-date figures for the original category separately from figures under category C until the end of the tax year, just as you would for any other in-year category change.
Finally, employers must obtain evidence that the employee has reached State Pension age, such as a passport or birth certificate. CA4140 certificates can still be used, but HMRC no longer issues new ones.
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