Below are earnings thresholds and contribution percentages for Class 1 (employed), Class 2 and 4 (self-employed) and Class 3 (voluntary) national insurance contributions.

Class 1 – Employed

Employees start paying Class 1 NIC from the age of 16 once they earn above the minimum threshold. Employers pay Class 1 NIC in accordance with the table below. Employer NIC for employees under the age of 21 and apprentices under the age of 25 is reduced from the normal rate of 13.8% to 0% up to the Upper Secondary Threshold.

Employees stop paying Class 1 NIC when they reach their State Pension Age, the employer’s contribution continues.

2018/19

Earnings per week Employees % Employers %
Up to £162 Nil  Nil
£162.01 – £892.00 12  13.8
Over £892 2  0

2017/18

Earnings per week Employees % Employers %
Up to £157 Nil  Nil
£157.01 – £866.00 12  13.8
Over £866 2  0

Other National Insurance payable by employers

Class 1A – 13.8% on broadly all taxable benefits provided to employees.

Class 1B – 13.8% on PAYE Settlement Agreements

Class 2 and 4 – Self Employed

A self-employed person starts paying Class 2 and Class 4 NIC from 16 and over if they make sufficient profits.

Class 2 NIC stops when a person reaches the State Pension Age.

Class 4 NIC stop from the start of the tax year after the one in which the person reaches the State Pension Age.

Class 2

Class 2 2018/2019 2017/18
Flat rate per week £2.95 £2.85
Small Profits Threshold (per annum) £6,205 £6,025

Class 4 – 2018/19

Annual profits %
Up to £8,424 Nil
£8,424.01 – £46,350 9
Over £46,350 2

Class 4 – 2017/18

Annual profits %
Up to £8,164 Nil
£8,164.01 – £45,000 9
Over £45,000 2

Class 3

A person needs 35 years or 30 years if the State Pension Age is before 6th April 2016, of NIC to get a full State Pension.

Class 3 voluntary contributions can be paid to fill or void gaps in a persons National Insurance record.

Flat rate per week is:

2018/19 – £14.65
2017/18 – £14.25