National Insurance rates and categories
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 £112 to £155 a week (£486 to £672 a month).
Employee National Insurance rates
This table shows how much employers deduct from employees’ pay for the 2015 to 2016 tax year.
| Category letter | £112 to £155 a week (£486 to £672 a month) | £155.01 to £770 a week (£672 to £3,337 a month) | £770.01 to £815 a week (£3,337 to £3,532 a month) | Over £815 a week (£3,532 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 2015 to 2016 tax year.
| Category letter | £112 to £156 a week (£486 to £676 a month) | £156.01 to £770 a week (£676 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% |
Employer rates for employees under 21
There are different employer contribution rates for employees under 21.
| Category letter | £112 to £156 a week (£486 to £672 a month) | £156.01 to £770 a week (£672 to £3,337 a month) | £770.01 to £815 a week (£3,337 to £3,532 a month) | Over £815 a week (£3,532 a month) |
|---|---|---|---|---|
| I | 3.4% rebate | 3.4% rebate | 0% | 13.8% |
| K | 3.4% rebate | 3.4% rebate | 0% | 13.8% |
| M | 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 once a year on expenses and benefits they give to their employees. The rate for the tax year 2015 to 2016 is 13.8%.
Category letters
Employers use an employee’s National Insurance category letter when they run payroll to work out how much they both need to contribute.
Most employees have category letter A or D. Employees can find their category letter on their payslip.
Employees in a contracted-out workplace pension scheme
| Category letter | Employee group |
|---|---|
| D | All employees apart from those in groups E, C, L, I or K in this table |
| E | Married women and widows entitled to pay reduced National Insurance |
| C | Employees over the State Pension age |
| L | Employees who can defer National Insurance because they’re already paying it in another job |
| I | Employees under 21 |
| K | Employees under 21 who can defer National Insurance because they’re already paying it in another job |
Employers running a contracted-out scheme will have been given a certificate by HM Revenue and Customs’ (HMRC) Pension Scheme Services.
Employees not in contracted-out pension schemes
| Category letter | Employee group |
|---|---|
| A | All employees apart from those in groups B, C, J, M and Z in this table |
| B | Married women and widows entitled to pay reduced National Insurance |
| C | Employees over the State Pension age |
| J | Employees who can defer National Insurance because they’re already paying it in another job |
| M | Employees under 21 |
| Z | Employees under 21 who can defer National Insurance because they’re already paying it in another job |
Employees in a contracted-out money purchase scheme
This kind of scheme ended in April 2012 but some employees might still be part of one.
| Category letter | Employee group |
|---|---|
| F | Tax years before 2012 to 2013 only: all employees apart from the ones in groups G, C and S in this table |
| G | Tax years before 2012 to 2013 only: married women and widows entitled to pay reduced National Insurance |
| C | Employees over the State Pension age |
| S | Tax years before 2012 to 2013 only: employees who can defer National Insurance because they’re already paying it in another job |
Category letter X
Employers use category letter X for employees who don’t have to pay National Insurance, eg because they’re under 16.
Mariners and deep sea fishermen
HMRC has detailed information on National Insurance for mariners and deep sea fishermen.
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