Budget 2009 - NI Contributions

Class 1 (not contracted out)

Employer

Employee

Lower earnings limit

£95

Payable on weekly earnings

£110.01 - £844

12.8%

11%

Over £844

12.8%

1%

Payable on monthly earnings

£477 - £3,657

12.8%

11%

Over £3,657

12.8%

1%

Men 65 and over
and women 60 and over

12.8%

Nil

Employees’ contracted-out rebate

1.6%

Married women’s reduced rate between £110 and £844

4.85%

Employers’ contracted-out rebate, salary-related schemes

3.7%

Employers’ contracted-out rebate, money purchase schemes

1.4%

Class 1A (on relevant benefits)

12.8%

Nil

Class 1B (on PAYE settlement arrangement)

12.8%

Class 2 (self employed)

£2.40 per week

Class 2 contributions - share fishermen

£3.05 per week

Class 2 contributions - volunteer development workers

£4.75 per week

Limit of net earnings for exception

£5,075 per annum

Contributions cease at state retirement age

Class 3 (voluntary)

£12.05 per week

Class 4 (*Self employed on profits)

£5,715 to £43,875

8%

Excess over £43,875

1%

*Exemption applies if state retirement age was reached by 6 April 2009

Maximum Contributions

Class 1 or Class 1 & 2

£4,279.22 + 1% of earnings over £844 p.w.

Class 2 and Class 4

£3,052.80 + 1% of profits
over £43,875 p.a.