National Insurance

Here are the National Insurance Rates for employees.


National Insurance Rates for employees
Earnings limitsA *B *C *D *E *
Below £102 weekly
Below £442 monthly
Below £5,304 yearly
NilNilNilNilNil
£102 to £139 weekly
£442 to £602 monthly
£5,304 to £7,225 yearly
0%0%Nil0% **0%
£139.01 to £770 weekly
£602.01 to £3,337 monthly
£7,225.01 to £40,040 yearly
12%5.85%Nil10.40%5.85%
£770.01 to £817 weekly
£3,337.01 to £3,540 monthly
£40,040.01 to £42,475 yearly
12%5.85%Nil12%5.85%
Over £817 weekly
Over £3,540 monthly
Over £42,475 yearly
2%2%Nil2%2%

*A Full rate - not contributing to pension scheme
*B Married women's reduced rate - not contributing to pension scheme 
*C Exempt
*D Full rate - contributing to pension scheme
*E Married women's reduced rate - contributing to pension scheme

**A rebate of 1.6 per cent is due on these earnings. The amount of NI contributions due is then reduced by this rebate but if no National Insurance contributions are due, the employee is not entitled to the rebate.

Married Woman's Reduced Rate - IMPORTANT

Some married women and widows have the right to pay reduced rate National Insurance contributions. If you have this right, the council must hold a valid 'certificate of election' issued by the Inland Revenue National Insurance Contributions Office.

This right is lost if you get divorced or your marriage is annulled. By law, you must inform your employer that the marriage has ended. The Shared Services Centre must be notified immediately of this change in order that standard rate contributions can be deducted from pay.

Exemptions from National Insurance

Age Exemption
If you are over the State Pension Age you do not have to pay National Insurance contributions on your earnings. 

However, deductions will continue to be made from your pay until you obtain a certificate of age exception from:

HM Revenue and Customs
National Insurance Contributions Office
Individuals Caseworker
Benton Park View,
Newcastle upon Tyne
NE98 1ZZ

The certificate must be forwarded to the Shared Services Centre.

Multiple Job Exemption
Are you already paying the maximum amount of National Insurance contributions throughout the year and take on another job from which contributions are also deducted? You can apply to the Inland Revenue for form CA2700. If your employer holds this form, National Insurance contributions will be deducted at 2 per cent on earnings above £139 per week or £602 per month.

Find out more by contacting Deferment Services on 0845 915 7141 or read 'Guidance Notes for form CA72A at www.hmrc.gov.uk/allforms.shtml (opens in a new window)