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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%.
 

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