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National Insurance contributions (NIC) - rates and allowances

2024/25

  • 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 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 - 2024/25

Earnings per week %
Up to £242* Nil
£242.01 - £967 8
Over £967 2

Entitlement to state pension and other contribution-based benefits is retained for earnings between £123 and £242 per week.

Employers - Class 1 - 2024/25

Earnings per week %
Up to £175 Nil
Over £175 13.80

Other National Insurance payable by employers

Class 1A - 13.8% on broadly all taxable benefits provided to employees and on certain taxable termination payments in excess of £30,000

Class 1B - 13.8% 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.
  • From 6 April 2024, there is no longer a requirement to pay Class 2. Voluntary contributions can still be made.
  • 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 - 2024/25

Flat rate per week £3.45
Small Profits Threshold £6,725 per year
Lower Profits Limit n/a

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 - 2024/25

Annual profits %
Up to £12,570 Nil
£12,570.01 - £50,270 6
Over £50,270 2

Class 3

  • 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 - 2024/25

Flat rate per week £17.45

2023/24

    • 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 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 - 2023/24

    Earnings per week %
    Up to £242* Nil
    £242.01 - £967 12 up to 5 Jan 2024
    10 from 6 Jan 2024
    Over £967 2

    Entitlement to state pension and other contribution-based benefits is retained for earnings between £123 and £242 per week.

    Employers - Class 1 - 2023/24

    Earnings per week %
    Up to £175 Nil
    Over £175 13.80

    Other National Insurance payable by employers

    Class 1A - 13.8% on broadly all taxable benefits provided to employees and on certain taxable termination payments in excess of £30,000

    Class 1B - 13.8% 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 £3.45
    Small Profits Threshold £6,725 per year
    Lower Profits Limit £12,570

    For 2023/24 the point at which the self-employed person starts to pay Class 2 NICs is £12,570. 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 - 2023/24

    Annual profits %
    Up to £12,570 Nil
    £12,570.01 - £50,270 9
    Over £50,270 2

    Class 3

    • 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 - 2023/24

    Flat rate per week £17.45