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Employees' National Insurance Rates and Bands

Your payslip will normally make it clear which rate of National Insurance you pay. If you are not sure, check with your HR department.

Bands of National Insurance:

Employees' primary Class 1 rate (not contracted-out)

This rate is for employees who are not contributing to a pension scheme and are in National Insurance category A.

Employees' primary Class 1 rate (contracted-out)

For those employees who are contributing to a pension scheme and are in National Insurance category D.

Employees also receive a rebate 0f 1.6% on earnings between £87.01 and £100 per week or £377 and £435 per month.

Married Woman's Reduced Rate (category B or E)

Some married women and widows have the right to pay reduced rate National Insurance contributions. If you have this right, your employer must hold a valid "certificate of election" issued by the HM Customs and Revenue.

Age Exemption

If you are over the State pension age (currently 60 for women and 65 for men) you do not have to pay National Insurance contributions on your earnings.

Visit http://www.hmrc.gov.uk/rates/nic.htm for current rates.

See Also

Childcare Voucher Help

Lower Earnings Limit

Minimum Wage

Over 65 Tax Allowance

Salary Sacrifice Schemes

Childcare Voucher Salary

Salary Sacrifice Warning