National insurance contributions & rates

Class 1 (not contracted out) Employer Employee
Lower earnings limit   £102
Payable on weekly earnings    
£136.01 - £139 13.8% Nil
£139.01 - £817 13.8% 12%
Over £817 13.8% 2%
Payable on monthly earnings    
£589 - £602 13.8% Nil
£602 - £3,540 13.8% 12%
Over £3,540 13.8% 2%
Men 65 and over and women from
the date they qualify for state pension		 13.8% Nil
Employees' contracted-out rebate 1.6%
Married women's reduced rate between £139 and £817 5.85%
Employers' contracted-out rebate, salary-related schemes 3.7%
Employers' contracted-out rebate, money purchase schemes 1.4%
   
Class 1A (on relevant benefits) 13.8% Nil
   
Class 1B (on PAYE settlement arrangement) 13.8%  
   
Class 2 (self employed) £2.50 per week
Class 2 contributions - share fishermen £3.15 per week
Class 2 contributions - volunteer development workers £5.10 per week
Limit of net earnings for exception £5,315 per annum
Contributions cease at state retirement age  
Class 3 (voluntary) £12.60 per week
   
Class 4 (* Self employed on profits)  
£7,225 to £42,475 9%
Excess over £42,475 2%
*Exemption applies if state retirement age was reached by 6 April 2011.
   
Maximum contributions  
Class 1 or Class 1 & 2 £4,230 + of earnings over £817 p.w.
Class 2 and Class 4 £3,310.30 + of profits over £42,475 a year

Notes

  1. For those earning between £139 per week and £817 per week, employers receive a rebate of 1.4% on contracted out money purchase schemes or 3.7% on contracted out final salary schemes, and employees, a rebate of 1.6% for either scheme.
  2. For children under 16, and employees over state pension age there are no national insurance contributions payable, but employers' contributions remain payable.

Did you know?

That the Government expect to receive £100.7bn from national insurance (2010/11 - £96.5bn)