# Contribution rates

An employee’s Class 1 National Insurance is made up of contributions:

• deducted from their pay (employee’s National Insurance)
• paid by their employer (employer’s National Insurance)

The amounts deducted and paid depend on:

• the employee’s National Insurance category letter
• how much of the employee’s earnings falls within each band

## Employee National Insurance rates

This table shows how much employers deduct from employees’ pay for the 2022 to 2023 tax year.

Category letter £123 to £190 (£533 to £823 a month) £190.01 to £967 (£823.01 to £4,189 a month) Over £967 a week (£4,189 a month)
A 0% 13.25% 3.25%
B 0% 7.1% 3.25%
C N/A N/A N/A
F 0% 13.25% 3.25%
H 0% 13.25% 3.25%
I 0% 7.1% 3.25%
J 0% 3.25% 3.25%
L 0% 3.25% 3.25%
M 0% 13.25% 3.25%
S N/A N/A N/A
V 0% 13.25% 3.25%
Z 0% 3.25% 3.25%

Example

If you’re in category A and you earn £1,000 in a week you’ll pay:

• nothing on the first £190
• 13.25% (£102.95) on your earnings between £190.01 and £967
• 3.25% (£1.07) on the remaining earnings above £967

This means your National Insurance payment will be £104.02 for the week.

## Employer National Insurance rates

This table shows how much employers pay towards employees’ National Insurance for the 2022 to 2023 tax year.

Category letter £123 to £175 (£533 to £758 a month) £175.01 to £481 (£758.01 to £2,083 a month) £481.01 to £967 (£2,083.01 to £4,189 a month) Over £967 a week (£4,189 a month)
A 0% 15.05% 15.05% 15.05%
B 0% 15.05% 15.05% 15.05%
C 0% 15.05% 15.05% 15.05%
F 0% 0% 15.05% 15.05%
H 0% 0% 0% 15.05%
I 0% 0% 15.05% 15.05%
J 0% 15.05% 15.05% 15.05%
L 0% 0% 15.05% 15.05%
M 0% 0% 0% 15.05%
S 0% 0% 15.05% 15.05%
V 0% 0% 0% 15.05%
Z 0% 0% 0% 15.05%

HM Revenue and Customs (HMRC) has full rates and thresholds for tax years:

You can also use calculators and tables to check employees’ National Insurance.

## Class 1A and Class 1B rates

Employers pay Class 1A and 1B National Insurance on expenses and benefits they give to their employees. They must also pay Class 1A on some other lump sum payments, for example redundancy payments.

The rate for the tax year 2022 to 2023 is 15.05%.

3. ### Step 2: Make your workplace safe and accessible for employees

You also need to make checks when you recruit and employ someone.

1. Find out what you need to check when you employ someone
4. ### Step 3: Register as an employer and set up PAYE

You need to register with HMRC so you can pay tax and national insurance for your employees.