- 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 of 15.05% 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 – 2022/23
|Earnings per week||%|
|Up to £190*||Nil|
|£190.01 – £967||13.25|
* £242 from 6 July 2022
Entitlement to state pension and other contribution-based benefits is retained for earnings between £123 and £190* per week.
Employers – Class 1 – 2022/23
|Earnings per week||%|
|Up to £175||Nil|
Other National Insurance payable by employers
Class 1A – 15.05% on broadly all taxable benefits provided to employees and on certain taxable termination and sporting testimonial payments in excess of £30,000
Class 1B – 15.05% 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||£3.15|
|Small Profits Threshold||£6,725 per year|
|Lower Profits Limit||£11,908|
For 2022/23 the point at which the self-employed person starts to pay Class 2 NICs will increase to £11,908. 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 – 2022/23
|Up to £11,908||Nil|
|£11,908.01 – £50,270||10.25|
- 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 – 2022/23
Flat rate per week £15.85