Class 1 (employed), Class 2 and 4 (self-employed), and Class 3 (voluntary) national insurance contributions have different earnings levels and contribution percentages.

Class 1

From the age of 16, employees must pay Class 1 NIC (if sufficient earnings).

Employers are responsible for paying Class 1 NIC according to the table below.

Employer NIC is decreased from 13.8 percent to 0 percent for employees under the age of 21 and apprentices under the age of 25 up to the Upper Secondary Threshold of £967 per week. Veterans in their first 12 months of employment are also eligible.

When employees attain the age of ‘State Pension age,’ they are no longer eligible for Class 1 NIC. The employer’s contribution is still being made.

Employees
2021/22:

Earnings per week (%)
Up to £184 Nil
£184.01 – £967 12
Over £967 2

Entitlement to state pension and other ‘contribution-based benefits’ is retained for earnings between £120 and £184 per week

2021/22:

Earnings per week (%)
Up to £184 Nil
£184.01 – £967 12
Over £967 2

Entitlement to state pension and other ‘contribution-based benefits’ is retained for earnings between £118 and £166 per week

Employees
2021/22:

Earnings per week (%)
Up to £170 Nil
Over £170 13.8

2021/22:

Earnings per week (%)
Up to £169 Nil
Over £169 13.8

Class 1

Class 1A
13.8 percent on most taxable employee benefits, as well as certain taxable termination and sporting testimonial payments in excess of £30,000.
Class 1B
13.8% on taxable PAYE Settlement Agreements.

Class 2 and 4 (self-employed)

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.

2021/22:

Class 2 (£)
Flat rate per week 3.05
Small Profits Threshold (per year) 6,515

2020/21:

Class 2 (£)
Flat rate per week 3.05
Small Profits Threshold (per year) 6,475

No Class 2 is due if the amount of trading profits assessable to income tax and Class 4 NIC is below this figure. However, a person might decide to carry on paying Class 2 voluntarily to accrue entitlement to the State Pension and entitlement to other benefits.

Class 4
2021/22:

Annual profits (%)
Up to £9,568 Nil
£9,568.01 – £50,270 9
Over £50,270 2

2020/21:

Annual profits (%)
Up to £9,500 Nil
£9,500.01 – £50,000 9
Over £50,000 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.

Flat rate per week: £15.40 (2020/21: £15.30)