National Insurance Contributions
| Class 1 (not contracted out) | Employer | Employee |
|---|---|---|
| Payable on weekly earnings of | ||
| Up to £109 (lower earnings limit) | Nil | Nil |
| £109 - £148 (employers’ earnings threshold) | Nil | 0%* |
| £148.01 - £149 (employees’ earnings threshold) | 13.8% | 0%* |
| £149.01 - £797 (upper earnings limit) | 13.8% | 12% |
| Over £797 | 13.8% | 2% |
| Over state pension age, the employee contribution is generally nil * No NICs are actually payable but notional Class 1 NIC is deemed to have been paid; this protects certain state benefit entitlements. |
||
| Class 1A (on relevant benefits) | 13.8% | Nil |
| Class 1B (on PAYE settlement arrangement) | 13.8% | Nil |
| Class 2 (Self employed) | £2.70 per week | |
| Limit of net earnings for exception | £5,725 per annum | |
| Class 3 (Voluntary) | £13.55 per week | |
| Class 4* (Self employed on profits) | ||
| £7,755 - £41,450 | 9% | |
| Excess over £41,450 | 2% | |
| *Exemption applies if state pension age was reached by 6 April 2013. | ||
Note
For those earning between £109 per week and £770 per week, employers receive a rebate of 3.4% on contracted out salary related schemes, and employees a rebate of 1.4%.
