How Do I Calculate My National Insurance Contributions?

National Insurance: Your Guide to Calculations for 2024

National Insurance (NI) is vital for funding the NHS, state pensions, and other benefits. Contributions differ based on employment status:

For Employees (Class 1 Contributions)

• Primary Threshold: 12% on earnings between £242 and £967/week.

• Upper Earnings Limit: 2% on earnings above £967/week.

For Employers

Employers pay 13.8% on employee earnings above £175/week. These contributions are separate from the employee’s NI deductions.

For the Self-Employed

• Class 2 Contributions: Flat rate of £3.45/week if profits exceed £12,570.

• Class 4 Contributions: 9% on profits between £12,570 and £50,270, and 2% on profits above £50,270.

HMRC provides a National Insurance calculator to simplify the process.