1. 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 2016 to 2017 tax year.

Category letter £112 to £155 a week (£486 to £672 a month) £155.01 to £827 a week (£672.01 to £3,583 a month) Over £827 a week (£3,583 a month)
A 0% 12% 2%
B 0% 5.85% 2%
C N/A N/A N/A
H 0% 12% 2%
J 0% 2% 2%
M 0% 12% 2%
Z 0% 2% 2%

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

  • Nothing on the first £155
  • 12% (£80.64) on your earnings between £155.01 and £827
  • 2% (£3.46) on the remaining earnings above £827

This means your National Insurance payment will be £84.10 for the week.

Employer National Insurance rates

This table shows how much employers pay towards employees’ National Insurance for the 2016 to 2017 tax year.

Category letter £112 to £156 a week (£486 to £676 a month) £156.01 to £827 a week (£676.01 to £3,583 a month) Over £827 a week (£3,583 a month)
A 0% 13.8% 13.8%
B 0% 13.8% 13.8%
C 0% 13.8% 13.8%
H 0% 0% 13.8%
J 0% 13.8% 13.8%
M 0% 0% 13.8%
Z 0% 0% 13.8%

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 once a year on expenses and benefits they give to their employees. The rate for the tax year 2016 to 2017 is 13.8%.