Skip to main content
Become a member
  • Register
  • Login

Register Login



National Insurance

22 May 2019

Earners pay National Insurance contributions (NICs) on their earnings. Employers pay employer contributions for each employee and collect and forward their employees' contributions.

Paying NICs ensures the earner's entitlement to various benefits, including the state pension. Employers should understand their National Insurance obligations and the opportunities to reduce the cost.

There are five classes of NICs. Employers are only concerned with Class 1, 1A and sometimes 1B. Class 2 and 4 apply to the self-employed. Class 3 are voluntary contributions paid by those who may not currently have to pay NICs or are not entitled to receive National Insurance credits.

The rates and allowances given below apply for the tax year 2019/20 unless otherwise stated.

This content is for members only.

Gain unlimited access to all of the resources and factsheets on by joining as a member.

IoD membership can help you reach your full potential through its various membership packages.

Are you ready to become part of the UK's most dynamic community for business leaders?

Find out more about IoD membership

Join now  Login

IoD Coronavirus Support Hub Call To Action

Contact us

020 7451 3100

Business information

Enquire online

Opening hours

9am-5pm, Monday-Friday, excluding UK public holidays

An error has occurred. Error: Related pages is currently unavailable.