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:
- the employee’s National Insurance category letter (external link)
- how much of the employee’s earnings falls within each band
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) |
|---|---|---|---|
| A | 0% | 12% | 2% |
| B | 0% | 5.85% | 2% |
| C | N/A | N/A | N/A |
| H | 0% | 12% | 2% |
| J | 0% | 2% | 2% |
| M | 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 £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) |
|---|---|---|---|
| A | 0% | 13.8% | 13.8% |
| B | 0% | 13.8% | 13.8% |
| C | 0% | 13.8% | 13.8% |
| H | 0% | 0% | 13.8% |
| J | 0% | 13.8% | 13.8% |
| M | 0% | 0% | 13.8% |
| Z | 0% | 0% | 13.8% |
HM Revenue and Customs (HMRC) has full rates and thresholds for tax years:
- 2019 to 2020 (external link)
- 2018 to 2019 (external link)
- 2017 to 2018 (external link)
- 2016 to 2017 (external link)
- 2015 to 2016 (external link)
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%.