Class 1 (employee contributions and employer contributions)

 Employee

Weekly earnings Not contracted out Contracted out
Below £116 (LEL) NIL NIL
£116- £162 (PT)* NIL NIL
£162.01 – £892 (UEL) 13.8% 10.60%
Over £892 2% 2%

 Employer

Weekly earnings Not contracted out Contracted out
Below £162 (ST) NIL NIL

The lower earnings limit (LEL) is £116. Employees don’t pay National Insurance but get the benefits of paying.

The upper earnings limit (UEL) is £892. All employees pay a lower rate of National Insurance above this point.

The primary threshold (PT) is £162. Employees start paying National Insurance.

The secondary threshold (ST) is £162. Employers start paying National Insurance.

The upper accrual point (UAP) ended on 5 April 2016. Previously £770. Employees with a contracted-out pension pay a lower rate of National Insurance up to this point.

*No NICs are actually payable but a notional Class 1 NIC is deemed to have been paid in respect of earnings between LEL and PT to protect contributory benefit entitlement.

Class 2 (self-employed flat rate)

£2.95 per week if earnings exceed £6,205 per annum.

Class 3 (voluntary flat rate)

£14.65 per week.

Class 4 (self-employed)

9% of annual profits between £8,424 (Lower Profits Limit – LPL) and £46,350 (Upper Profits Limit – UPL) plus 2% on the excess.