Home → Guides → Tax → Tax rates and allowances

National insurance contributions

2012/13    
Class 1 (not contracted out) Employer Employee
Lower earnings limit   £107
Payable on weekly earnings    
£144.01 - £146 13.8% Nil
£146.01 - £817 13.8% 12%
Over £817 13.8% 2%
Payable on monthly earnings    
£624 - £634 13.8% Nil
£634 - £3,540 13.8% 12%
Over £3,540 13.8% 2%
Men 65 and over and women from
the date they qualify for state pension		 13.8% Nil
Employees' contracted-out rebate 1.4%
Married women's reduced rate between £144 and £817 5.85%
Employers' contracted-out rebate, salary-related schemes 3.4%
Employers' contracted-out rebate, money purchase schemes Abolished from 6 April 2012
   
Class 1A (on relevant benefits) 13.8% Nil
   
Class 1B (on PAYE settlement arrangement) 13.8%  
   
Class 2 (self employed) £2.65 per week
Class 2 contributions - share fishermen £3.30 per week
Class 2 contributions - volunteer development workers £5.35 per week
Limit of net earnings for exception £5,595 per annum
Contributions cease at state retirement age  
Class 3 (voluntary) £13.25 per week
   
Class 4* (Self employed on profits)  
£7,605 to £42,475 9%
Excess over £42,475 2%
*Exemption applies if state retirement age was reached by 6 April 2012.
   
Maximum contributions  
Class 1 £4,267.56 + 2% of earnings over £42,475 pa.
Class 2 and Class 4 £3,278.75 + 2% of profits over £42,475 pa.

Notes

  1. For those earning between £144 per week and £817 per week, employers receive a rebate of 3.4% on contracted out final salary schemes, and employees, a rebate of 1.4%. The rebate for money purchase schemes is abolished from 6 April 2012.
  2. For children under 16, and employees over state pension age there are no national insurance contributions payable, but employers' contributions remain payable.

Did you know?

That the Treasury is expecting to raise £105.6 billion (2011/12 £102 billion) from national insurance contributions. In the current year this represents almost 80 per cent of the receipts from PAYE.