1. Contribution rates

There are 2 types of contribution made into an employee’s Class 1 National Insurance:

  • primary contributions (employee’s National Insurance) are deducted from an employee’s pay
  • secondary contributions (employer’s National Insurance) are paid by their employer

Both depend on the employee’s earnings and National Insurance category letter.

Primary contribution rates

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

Category letter £111 to £153 a week £153.01 to £770 a week £770.01 to £805 a week Over £805.01 a week
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%

Secondary contribution rates

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

Category letter £111 to £153 a week £153.01 to £770 a week £770.01 to £805 a week Over £805.01 a week
A 0% 13.8% 13.8% 13.8%
B 0% 13.8% 13.8% 13.8%
C 0% 13.8% 13.8% 13.8%
D 3.4% rebate 10.4% 13.8% 13.8%
E 3.4% rebate 10.4% 13.8% 13.8%
J 0% 13.8% 13.8% 13.8%
L 3.4% rebate 10.4% 13.8% 13.8%

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%.