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.

Employees and their employers pay less National Insurance if they’re in a contracted-out pension scheme. Both get a rebate if the employee’s earnings are £111 to £153 a week (£481 to £663 a month).

Employee National Insurance rates

This table shows how much employers deduct from employees’ pay for the 2014 to 2015 tax year.

Category letter £111 to £153 a week (£481 to £663 a month) £153.01 to £770 a week (£663 to £3,337 a month) £770.01 to £805 a week (£3,337 to £3,489 a month) Over £805 a week (£3,489 a month)
A 0% 12% 12% 2%
B 0% 5.85% 5.85% 2%
C N/A N/A N/A N/A
D 1.4% rebate 10.6% 12% 2%
E 0% 5.85% 5.85% 2%
J 0% 2% 2% 2%
L 1.4% rebate 2% 2% 2%

Employer National Insurance rates

This table shows how much employers pay towards employees’ National Insurance for the 2014 to 2015 tax year.

Category letter £111 to £153 a week (£481 to £663 a month) £153.01 to £770 a week (£663 to £3,337 a month) Over £770 a week (£3,337 a month)
A 0% 13.8% 13.8%
B 0% 13.8% 13.8%
C 0% 13.8% 13.8%
D 3.4% rebate 10.4% 13.8%
E 3.4% rebate 10.4% 13.8%
J 0% 13.8% 13.8%
L 3.4% rebate 10.4% 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 2014 to 2015 is 13.8%.

The rate was the same for 2013 to 2014 and won’t change for 2015 to 2016.