National Insurance is a mandatory contribution that applies to all individuals working in the UK.
The amount you are required to pay depends on your earnings. Fulfilling your National
Insurance obligations also grants you eligibility to claim various state benefits, such as maternity
benefits or the state pension.
Similar to Income Tax and NHS Pension contributions, National Insurance contributions are
automatically deducted from your pay within the NHS. This ensures a streamlined process
where these contributions are seamlessly withheld in conjunction with other deductions.
By fulfilling your National Insurance responsibilities, you not only comply with the legal
requirements but also gain access to important state benefits that can provide financial support
during significant life events or in preparation for retirement.
It is important to be aware of the specific National Insurance rates and thresholds that apply to
your income level. Staying informed about your National Insurance contributions will help you
understand your entitlements to state benefits and ensure compliance with your obligations as
an NHS employee in the UK.
2023/2024 National Insurance Rates
- If your annual income is below £12,570 or £1,048 per month, you will not be subject to any National Insurance contributions. This means none of your pay will be deducted for this purpose.
- For incomes falling between £1,048 and £4,189 per month, or £12,570 and £50,270 per year, a 12% National Insurance contribution will be levied on the earnings within this range.
- If your monthly income exceeds £4,189 or annual income exceeds £50,270, you will be required to pay a 2% National Insurance contribution on all earnings above these thresholds. Additionally, a 12% contribution will apply to the income falling between £1,048 and £4,189 per month, or £12,570 and £50,270 per year.
| NI | Earnings | % to pay |
|---|---|---|
| Primary Level | Up to £12,570 a year or £1,048 a month | 0 |
| Secondary Level | Up to £50,270 a year or £4,189 a month | 12 |
| Upper Level | Over £50,270 a year or £4,189 a month | 2 |
Based on recent government guidelines, it is essential to have made a minimum of 10 years’
worth of National Insurance contributions in order to qualify for any type of state pension. To
receive a full state pension, a total of at least 35 years’ worth of contributions is required. The
specific age at which you can start receiving your state pension can be found on our dedicated
State Pension Age page.
If you are employed in the National Health Service (NHS) or any other occupation, it is highly
likely that you fall under National Insurance category A. For the 2023/2024 period, payments
within this category are grouped as follows.
2023/24 National Insurance Source: Government’s National Insurance Page.
National Insurance in 2022/23 (from Nov 22)
| NI | Earnings | % to pay |
|---|---|---|
| Primary Level | Up to £12,570 a year or £1,048 a month | 0 |
| Secondary Level | Up to £50,270 a year or £4,189 a month | 12 |
| Upper Level | Over £50,270.01 a year or £4,189.01 a month | 2 |
- If your annual income is below £12,570 or £1,048 per month, you will not
be subject to any National Insurance contributions. This means none of
your pay will be deducted for this purpose. - For incomes falling between £1,048.01 and £4,189 per month, or £12,570
and £50,270.01 per year, a 12% National Insurance contribution will be
levied on the earnings within this range. - If your monthly income exceeds £4,189 or annual income exceeds
£50,270, you will be required to pay a 2% National Insurance contribution
on all earnings above these thresholds. Additionally, a 12% contribution will
apply to the income falling between £1,048.01 and £4,189 per month, or
£12,570 and £50,270 per year. The cost of the 12% contribution would
amount to approximately £376.92 per month or £4,524.00 per year.
2022/23 National Insurance Source: Government’s National Insurance Page.
National Insurance in 2021/22
The below information is based on 2021/22 National Insurance rates:
| NI | Earnings | % to pay |
|---|---|---|
| Primary Level | Up to £9,568 a year or £797 a month | 0 |
| Secondary Level | Up to £50,270 a year or £4,189 a month | 12 |
| Upper Level | Over £50,270.01 a year or £4,189.01 a month | 2 |
- If your annual income is below £9,568 or £797 per month, you will not be subject to any National
Insurance contributions. This means none of your pay will be deducted for National Insurance
purposes. - For incomes falling between £797.01 and £4,189 per month, or £9,568 and £50,270.01 per
year, a 12% National Insurance contribution will be levied on the earnings within this range. - If your monthly income exceeds £4,189 or annual income exceeds £50,270, you will be required
to pay a 2% National Insurance contribution on all earnings above these thresholds. In addition,
a 12% contribution will apply to the income falling between £797.01 and £4,189 per month, or
£9,568 and £50,270 per year. The cost of the 12% contribution would amount to approximately
£407.04 per month or £4,884.24 per year.
2021/22 National Insurance Source: Government’s National Insurance Page.
National Insurance in 2020/21
- If your annual income is below £9,500 (£792 per month or £183 per week), no National Insurance contributions are required.
- If your annual income exceeds £9,500 (£792 per month or £183 per week), a 12% National Insurance contribution applies to all earnings above this threshold.
- For those earning over £50,000, a 12% contribution is applied to earnings up to £50,000, and an additional 2% contribution is applied to any earnings surpassing this amount.
The simplified table below illustrates these National Insurance rates:
| NI | Earnings | % to pay |
|---|---|---|
| Primary Level | Up to £9,500.00 a year, £792.00 a month or £183.00 a week | Zero |
| Secondary Level | Over £9,500.00 a year, £792.00 a month or £183.00 a week | 12% |
| Upper Level | Over £50,000.00 a year, £4,167.00 a month or £962.00 a week | 2% |
2020/21 National Insurance Source: Government’s National Insurance Page.
Other
There are various National Insurance rates in place, but the rates mentioned above are the
most common and applicable to the majority of individuals, particularly those employed in the
NHS. It’s important to note that specific circumstances or employment arrangements may result
in different National Insurance rates.
However, for the majority of people, including NHS
workers, the rates outlined previously are the ones that generally apply. It is recommended to
consult with relevant authorities or professional advisors to determine the specific National
Insurance rates that may be applicable to your individual situation.
