Home > > 2010/11 rates and allowances > National insurance contributions

National insurance contributions

Class 1 (not contracted out)	Employer	Employee
Lower earnings limit		£97
Payable on weekly earnings
£110.01 - £844	12.8%	11%
Over £844	12.8%	1%
Payable on monthly earnings
£476 - £3,656	12.8%	11%
Over £3,656	12.8%	1%
Men 65 and over and women 60 and over	12.8%	Nil
Employees' contracted-out rebate	1.6%
Married women's reduced rate between £110 and £844	4.85%
Employers' contracted-out rebate, salary-related schemes	3.7%
Employers' contracted-out rebate, money purchase schemes	1.4%

Class 1A (on relevant benefits)	12.8%	Nil

Class 1B (on PAYE settlement arrangement)	12.8%

Class 2 (self employed)	£2.40 per week
Class 2 contributions - share fishermen	£3.05 per week
Class 2 contributions - volunteer development workers	£4.85 per week
Limit of net earnings for exception	£5,075 per annum
Contributions cease at state retirement age
Class 3 (voluntary)	£12.05 per week

Class 4 (* Self employed on profits)
£5,715 to £43,875	8%
Excess over £43,875	1%
*Exemption applies if state retirement age was reached by 6 April 2010.

Maximum contributions
Class 1 or Class 1 & 2	£4,279.22 + 1% of earnings over £844 p.w.
Class 2 and Class 4	£3,177.60 + 1% of profits over £43,875 a year

For those earning between £110 per week and £844 per week, employers receive a rebate of 1.4% on contracted out money purchase schemes or 3.7% on contracted out final salary schemes, and employees, a rebate of 1.6% for either scheme.
For children under 16, and employees over state pension age there are no national insurance contributions payable, but employers' contributions remain payable.