National Insurance contributions (NIC) - rates and allowances

• Employees start paying Class 1 NIC from age 16 (if sufficient earnings).
• Employers pay Class 1 NIC in accordance with the table below.
• Employer NIC for employees under the age of 21 and apprentices under the age of 25 is reduced from the normal rate to 0% up to the Upper Secondary Threshold of £967 per week. Also applies to veterans in the first 12 months of employment.
• Employees' Class 1 NIC stop when they reach their State Pension age. The employer's contribution continues.

Employees - Class 1 - 2024/25

Entitlement to state pension and other contribution-based benefits is retained for earnings between £123 and £242 per week.

Employers - Class 1 - 2024/25

Other National Insurance payable by employers

Class 1A - 13.8% on broadly all taxable benefits provided to employees and on certain taxable termination payments in excess of £30,000

Class 1B - 13.8% on taxable PAYE Settlement Agreements

Self-employed - Class 2 and 4

• A self-employed person starts paying Class 2 and Class 4 NIC from 16 or over (if sufficient profits)
• Class 2 NIC stop when a person reaches State Pension age.
• From 6 April 2024, there is no longer a requirement to pay Class 2. Voluntary contributions can still be made.
• Class 4 NIC stop from the start of the tax year after the one in which the person reaches State Pension age.

Self-employed - Class 2 - 2024/25

A self-employed person with profits below the Small Profits Threshold might decide to carry on paying Class 2 voluntarily to accrue entitlement to the State Pension and other benefits.

Class 4 - 2024/25

Class 3

• A person needs 35 years (30 years if State Pension age is before 6 April 2016) of NIC to get a full State Pension.
• Class 3 voluntary contributions can be paid to fill or avoid gaps in a NI record.

Class 3 - 2024/25

Flat rate per week £17.45

National Insurance contributions (NIC) - rates and allowances

• • Employees start paying Class 1 NIC from age 16 (if sufficient earnings).
  • Employers pay Class 1 NIC in accordance with the table below.
  • Employer NIC for employees under the age of 21 and apprentices under the age of 25 is reduced from the normal rate to 0% up to the Upper Secondary Threshold of £967 per week. Also applies to veterans in the first 12 months of employment.
  • Employees' Class 1 NIC stop when they reach their State Pension age . The employer's contribution continues.

  Employees - Class 1 - 2023/24

  Earnings per week	%
  Up to £242*	Nil
  £242.01 - £967	12 up to 5 Jan 2024 10 from 6 Jan 2024
  Over £967	2

  Entitlement to state pension and other contribution-based benefits is retained for earnings between £123 and £242 per week.

  Employers - Class 1 - 2023/24

  Earnings per week	%
  Up to £175	Nil
  Over £175	13.80

  Other National Insurance payable by employers

  Class 1A - 13.8% on broadly all taxable benefits provided to employees and on certain taxable termination payments in excess of £30,000

  Class 1B - 13.8% on taxable PAYE Settlement Agreements

  Self-employed - Class 2 and 4

  • A self-employed person starts paying Class 2 and Class 4 NIC from 16 or over (if sufficient profits)
  • Class 2 NIC stop when a person reaches State Pension age
  • Class 4 NIC stop from the start of the tax year after the one in which the person reaches State Pension age.

  Self-employed - Class 2 - 2022/23

  Flat rate per week	£3.45
  Small Profits Threshold	£6,725 per year
  Lower Profits Limit	£12,570

  For 2023/24 the point at which the self-employed person starts to pay Class 2 NICs is £12,570. This means those with profits between the Small Profits Threshold and the Lower Profits Limit will not pay Class 2 NICs, but will still be able to access entitlement to contributory benefits.  A self-employed person with profits below the Small Profits Threshold might decide to carry on paying Class 2 voluntarily to accrue entitlement to the State Pension and other benefits.

  Class 4 - 2023/24

  Annual profits	%
  Up to £12,570	Nil
  £12,570.01 - £50,270	9
  Over £50,270	2

  Class 3

  • A person needs 35 years (30 years if State Pension age is before 6 April 2016) of NIC to get a full State Pension.
  • Class 3 voluntary contributions can be paid to fill or avoid gaps in a NI record.

  Class 3 - 2023/24

  Flat rate per week £17.45