National Insurance and State Pensions

2. Employee Contributions

2.1 Employees pay:

  • No contribution if pay is below £149 a week.
  • 12% on earnings between £149 and £797 a week in the 2013/14 tax year, plus 2% on all earnings over £797 a week. The 12% rate is reduced to 10.8% up to the ‘accruals point’ if the employee is a member of the employer’s occupational pension scheme.

2.2 There are special rules for some employees.

  • Married women and widows who opted for ‘reduced liability’ before 12 May 1977 pay 5.85% NICs on earnings between £149 and £797 a week, plus 2% on all earnings above £797 a week.
  • Employees with more than one job pay NICs for each job that earns more than £149 a week.
  • Those over the state pension age do not pay NICs once they provide their employer with a Certificate of Age Exception. The employer still pays NICs at the full rate.

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