National Insurance Rates and Categories

Contribution Rates 

An employee’s Class 1 (external link) 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: 

Employee National Insurance Rates 

This table shows how much employers deduct from employees’ pay for the 2019 to 2020 tax year. 

Category Letter£118 to £166 a week (£512 to £719 a month)£166.01 to £962 a week (£719.01 to £4,167 a month)Over £962 a week (£4,167 a month)
A0%12%2%
B0%5.85%2%
CN/AN/AN/A
H0%12%2%
J0%2%2%
M0%12%2%
Z0%2%2%

Example 

If you’re in category A and you earn £1,000 in a week you’ll pay: 

  • nothing on the first £166 
  • 12% (£95.52) on your earnings between £166.01 and £962 
  • 2% (£0.76) on the remaining earnings above £962 

This means your National Insurance payment will be £96.28 for the week. 

Employer National Insurance Rates 

This table shows how much employers pay towards employees’ National Insurance for the 2019 to 2020 tax year. 

Category Letter£118 to £166 a week (£512 to £719 a month)£166.01 to £962 a week (£719.01 to £4,167 a month)Over £962 a week (£4,167 a month)
A0%13.8%13.8%
B0%13.8%13.8%
C0%13.8%13.8%
H0%0%13.8%
J0%13.8%13.8%
M0%0%13.8%
Z0%0%13.8%

HM Revenue and Customs (HMRC) has full rates and thresholds for tax years: 

You can also use calculators and tables (external link) 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 (external link) they give to their employees. The rate for the tax year 2019 to 2020 is 13.8%. 

See Also: