The 3 Fundamental Factors for SSC Categories
There are 3 main factors that determine the correct Social Security Contributions* (SSC) Category:
- Weekly Wage
- Date of Birth
- Employment Status
In this guide, we will explain how each of these 3 factors may influence the SSC Category.
*SSC may be generally referred to as National Insurance Contributions (NI or NIC).
Weekly Wage
One of the most significant factors is the Weekly Wage, as shown in the table presented by the Commissioner for Revenue (2024).
Buddy will calculate the Weekly Wage, the Social Security Category and the number of contributions owed upon processing payslips for you. Thus, you will not have to worry about selecting which Category your employees should fall under. For more information on how the Weekly Wage is calculated, check our Weekly Wage Calculation article.
Date of Birth
For employees earning under a certain amount, their Date of Birth will determine whether they are placed under Category A or B, Category A being for those under 18 years of age.
Also for employees falling under the C or D category, the Date of Birth will also affect whether the employee will have the SSC deducted at the pre-1962 or after-1962 rate.
Employees over 65 will automatically be defaulted to not pay SSC or MFC automatically. Employees who go on pension earlier than 65 still need to have their Social Security rate set as Pensioner.
Employment Status
Lastly, employment status also affects the category. For example, an employee set as Student will be paying SSC Contributions under Category E or F (depending on their age). The full list of available employment statuses can be found here: Table of Employment Statuses.
Relevant Buddy Details
To make sure your employees are paying the correct SSC, always make sure to fill in accurately:
- Employee's Date of Birth
- Employee's Salary Information
- Employee's Employment Status
- Employee's Tax Details*
*In the Tax Details, you can specify if the employee prefers to pay the minimum 10% SSC rather than the standard weekly rate for Category B only.