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HMRC internal manual

National Insurance Manual

Class 1 structural overview from April 2009: not contracted-out rate NICs

Section 8, SSCBA 1992

Not contracted-out (full) rate NICs are paid by those who are included in the State Second Pension. (State Earnings Related Pension Scheme (SERPS) before 6 April 2002) The primary element, see NIM01001, is payable at either a standard rate or, for certain married women and widows, at a reduced rate.

From 6 April 2012, anyone in a personal or stakeholder pension scheme or a contracted-out money purchase (‘defined contribution’) occupational pension scheme are no longer contracted out of the State Second Pension and are liable to pay NICs at the Not contracted-out (full) rate.

Section 8 SSCBA 1992 provides that for the tax year beginning 6 April 2011 onwards:

  • the main primary percentage is 12% and
  • the additional primary percentage is 2%.

For further information about married women’s’ and widows’ reduced rate NICs, see NIM30000 and NIM31000, respectively.

For information on the structure of primary Class 1 NICs before 6 April 2003, see NIM01000 onwards.

For information on the structure of primary Class 1 NICs from 6 April 2003 and before 6 April 2009, see NIM01100 onwards