# 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 earnings and National Insurance category letter.

## 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%

## 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%.