Budget 2008: National Insurance Contributions

Class 1 (not contracted out)	Employer	Employee
Lower earnings limit		£90
Payable on weekly earnings
£105.01 - £770	12.8%	11%
Over £770	12.8%	1%
Men 65 and over and women 60 and over	12.8%	Nil
Employees' contracted-out rebate	1.6%
Married women's reduced rate between £105 and £770	4.85%
Employers' contracted-out rebate, salary-related schemes	3.7%
Employers' contracted-out rebate, money purchase schemes	1.4%

Class 1A (on relevant benefits)	12.8%	Nil

Class 1B (on PAYE settlement arrangement)	12.8%

Class 2 (Self employed)	£2.30 per week
Class 2 contributions - share fishermen	£2.95 per week
Class 2 contributions - volunteer development workers	£4.50 per week
Limit of net earnings for exception	£4,825 per annum

Class 3 (Voluntary)	£8.10 per week

*Class 4 ( Self employed on profits)**
£5,435 to £40,040	8%
Excess over £40,040	1%
*Exemption applies if state retirement age was reached by 6 April 2008.

Maximum contributions
Class 1 or Class 1 & 2	£3,876.95 + 1% of earnings over £770
Class 2 & Class 4	£2,890.30 + 1% of profits over £40,040 a year

Self employed
Class 4 increase compared to 2007/08 (up to upper profits limit £347.20 (14.6%)

For those earning between £90 per week and £770 per week, employers receive a rebate of 1.4% on contracted out money purchase schemes or 3.7% on contracted out final salary schemes, and employees, a rebate of 1.6% for either scheme.
For children under 16, men over 65 and women over 60 there are no employee national insurance contributions payable, but employers' contributions remain payable.

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