![]() ![]() ![]() They pay 2% on all earnings above £967 a week – which equates to an income of £50,284 a year. In some years the government tops up the fund, while in others it uses the surplus for government expenditure elsewhere.Īn employee who earns more than £242 a week, or £1,048 a month, in a job, now pays 10% in class 1 national insurance contributions. National insurance is paid into the national insurance fund, which is used for benefits but is not ringfenced. National insurance is paid between the age of 16 and the state pension age. Class 3 is voluntary, and these contributions are paid by workers who want to build up their entitlement to benefits. ![]() To make things complicated, there are several classes, with separate ones for employees, employers and self-employed people, and some payments are voluntary, while others are mandatory. It is also paid by employers, and unlocks access to certain benefits, including the state pension. Workers pay it on earned income only – so it does not apply to interest on shares or money from pensions.įor employees, it is charged according to each job, rather than their total income, so those who have multiple low-paid jobs may not pay as much as someone earning the same amount from a single position. National insurance is similar to income tax and is taken from salary or, for self-employed people, through self-assessment, but there are differences. ![]()
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