NIC Contributions
An employee's Class 1 contributions are formed by two elements:
- The Employee's NI (deducted from pay)
- The Employer's NI (paid by the employer)
The amounts deducted will depend on the employee's National Insurance Category Letter and the amount of earnings that fall into different bands (see tables below)
NIC Categories
| Category | Employee Group |
| A | All employees |
| B | Married women and widows who are entitled to pay reduced NI |
| C |
Employees who are over the State Pension age |
| H | Apprentices under the age of 23 |
| J | Employees who are paying NI in another employment, and hence can defer NI |
| M | Employees under the age of 21 |
| V | Veterans who are in their first job after leaving the armed forces |
| Z | Employees under the age of 21 who are paying NI in another employment |
NIC Bands
When hovering over the NIC Calculations, you may often see letters associated with Bands. These are separate to Categories mentioned above.
Below find a table of what the Bands refer for 2024-2025, and the rate for each NIC Category (in the headers)
| Annual Thresholds | % Bands | A/M/H/F/V/N | B/I/E | C/S/K | J/L/Z/D |
|---|---|---|---|---|---|
| Zero to LEL (0 to 6,396) | Band A | Nil | Nil | Nil | Nil |
| LEL to ST (6,396 to 9,100) | Band B | 0% | 0% | Nil | 0% |
| ST to PT (9,100 to 12,570) | Band C | 0% | 0% | Nil | 0% |
| PT to FUST/IZUST (12,570 to 25,000) | Band D | 8% | 1.85% | Nil | 2% |
| FUST/IZUST to UEL/UST/AUST/VUST (25,000 to 50,270) | Band E | 8% | 1.85% | Nil | 2% |
| Above UEL/UST/AUST/VUST (Above 50,270) | Band F | 2% | 2% | Nil | 2% |