National Insurance: the basics

National Insurance contribution types

There are different types of National Insurance contributions (NICs). Some are paid at a flat rate - with others, the amount payable is linked to earnings.

Class 1 NICs are calculated using three levels of earnings set by the government - the earnings threshold, the lower earnings limit and the upper earnings limit.

The earnings threshold and the upper earnings limit are explained below. The lower earnings limit is the level at which employees are entitled to National Insurance benefits, even if they are not making any contributions.

The table below shows the various different categories of NICs and who pays them.

NIC types explained

Subjects covered in this guide

• Introduction
• National Insurance contribution types
• National Insurance contributions for employers and employees
• National Insurance contributions for the self-employed
• I'm both an employer and an employee