National Insurance rates and categories

Skip to contents of guide

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

From 6 April 2022 to 5 November 2022, the National Insurance rates included a 1.25% increase.

Employee National Insurance rates

This table shows how much employers deduct from employees’ pay from 6 November 2022 to 5 April 2023.

Category letter £123 to £242 (£533 to £1,048 a month) £242.01 to £967 (£1,048.01 to £4,189 a month) Over £967 a week (£4,189 a month)
A 0% 12% 2%
B 0% 5.85% 2%
C N/A N/A N/A
F 0% 12% 2%
H 0% 12% 2%
I 0% 5.85% 2%
J 0% 2% 2%
L 0% 2% 2%
M 0% 12% 2%
S N/A N/A N/A
V 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 £242
  • 12% (£87) on your earnings between £242.01 and £967
  • 2% (£0.66) on the remaining earnings above £967

This means your National Insurance payment will be £87.66 for the week.

Employer National Insurance rates

This table shows how much employers pay towards employees’ National Insurance from 6 November 2022 to 5 April 2023.

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% 13.8% 13.8% 13.8%
B 0% 13.8% 13.8% 13.8%
C 0% 13.8% 13.8% 13.8%
F 0% 0% 13.8% 13.8%
H 0% 0% 0% 13.8%
I 0% 0% 13.8% 13.8%
J 0% 13.8% 13.8% 13.8%
L 0% 0% 13.8% 13.8%
M 0% 0% 0% 13.8%
S 0% 0% 13.8% 13.8%
V 0% 0% 0% 13.8%
Z 0% 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 on expenses and benefits they give to their employees. The rate from 6 November 2022 to 5 April 2023 on expenses and benefits is 14.53%.

They must also pay Class 1A on some other lump sum payments, for example redundancy payments. HMRC has detailed guidance on all Class 1A and Class 1B rates.