National Insurance Contributions


Class 1 (not contracted out) Employer Employee
Payable on weekly earnings of    
Up to £102 (lower earnings limit) Nil Nil
£102 - £136 (employers’ earnings threshold) Nil Nil
£136.01 - £139 (employees’ earnings threshold) 13.8% Nil
£139.01 - £770 (upper accrual point) 13.8% 12%
£770.01 - £817 (upper earnings limit) 13.8% 12%
Over £817 13.8% 2%
Over state retirement age, the employee contribution is generally Nil
   
Class 1A (on relevant benefits) 13.8% Nil
   
Class 1B (on PAYE settlement arrangement) 13.8% Nil
   
Class 2 (Self employed) £2.50 per week
Limit of net earnings for exception £5,315 per annum
   
Class 3 (Voluntary) £12.60 per week
   
Class 4* (Self employed on profits)  
£7,225 - £42,475 9%
Excess over £42,475 2%
*Exemption applies if state retirement age was reached by 6 April 2011.

Note

For those earning between £102 per week and £770 per week, employers receive a rebate of 1.4% on contracted out money purchase schemes or 3.7% on contracted out salary related schemes, and employees a rebate of 1.6% for either scheme.



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