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Home > > 2008/09 Rates and Allowances > National Insurance Contributions

National Insurance Contributions

Class 1 (not contracted out) Employer Employee
Lower earnings limit   £90
Payable on weekly earnings    
£105.01 - £770 12.8% 11%
Over £770 12.8% 1%
Payable on monthly earnings    
£453 - £3,337 12.8% 11%
Over £3,337 12.8% 1%
Men 65 and over and
women 60 and over		 12.8% Nil
Employees' contracted-out rebate 1.6%
Married women's reduced rate between £105 and £770 4.85%
Employers' contracted-out rebate, salary-related schemes 3.7%
Employers' contracted-out rebate, money purchase schemes 1.4%
   
Class 1A (on relevant benefits) 12.8% Nil
   
Class 1B (on PAYE settlement arrangement) 12.8%  
   
Class 2 (Self employed) £2.30 per week
Class 2 contributions - share fishermen £2.95 per week
Class 2 contributions - volunteer development workers £4.50 per week
Limit of net earnings for exception £4,825 per annum
   
Class 3 (Voluntary) £8.10 per week
   
Class 4 (* Self employed on profits)  
£5,435 to £40,040 8%
Excess over £40,040 1%
*Exemption applies if state retirement age was reached by 6 April 2008.
   
Maximum contributions  
Class 1 or Class 1 & 2 £3,876.95 + 1% of earnings over £770
Class 2 & Class 4 £2,890.30 + 1% of profits over £40,040 a year
   
Self employed  
Class 4 increase compared to 2007/08 (up to upper profits limit £347.20 (14.6%)

Notes

  1. For those earning between £90 per week and £770 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, men over 65 and women over 60 there are no national insurance contributions payable, but employers' contributions remain payable.

Did you know

That the Government expect to raise £105 billion from national insurance contributions. This represents an increase of more than 7% when compared to the £97.4 billion estimated yield in the last tax year.