The UK Careers Fair logo
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
HomeAbout2024 ScheduleEventsNewsJobsLondon
Exhibit With UsBook A Stand
Contact Us
Finance
5 min read

National Insurance Rates

National Insurance originates from The National Insurance Act of 1911 and was then later expanded upon in 1948 with the arrival of the ‘welfare state’ although it has had several amendments since then. It was initially implemented to protect people from times of hardship.
Written by
Joanna Clare
Content Manager
Published on
January 8, 2024

National Insurance originates from The National Insurance Act of 1911 and was then later expanded upon in 1948 with the arrival of the ‘welfare state’ although it has had several amendments since then. It was initially implemented to protect people from times of hardship.

Currently, If you earn over £242 per week from your job or are self employed and make a profit of more than £12,570 a year then you will be liable to pay national insurance contributions. These contributions are not optional and you will see on your payslip how much is being deducted from your wages if you get paid via PAYE. The amount of contributions you pay are dependent upon your wages so if your wages fluctuate, then so will your contributions. If you are self employed then the rate of your national insurance contributionsNa will be finalised with your self assessment tax return that you submit.

National Insurance contributions help build your entitlement for certain benefits such as the state pension when you reach retirement age and other social security benefits that rely on you having paid enough contributions over time.

There are four different classes of national insurance - these are Classes 1-4. Class 1 is paid by both employers and employees while Class 2 contributions are paid if you are self employed although the good news if you fall into this category is that as from this April 2024, you will no longer be required to pay Class 2 contributions. This is predicted to affect around two million of those who are self-employed in the UK. Class 3 is voluntary with the aim of filling in any gaps you may have accrued in your National Insurance record and Class 4 is paid by the self-employed if you earn over a certain limit. The different Classes may be confusing to some so if you are unsure it is always best to seek professional guidance and advice, especially for those who are self employed.

However, as from last week on January 6th, the national insurance rates were cut by 2%, from 12% to 10%  which may not appear to be much yet it will make a significant difference to many workers in the UK, (around 27 million!) and the impact will be seen in January’s wages. A few examples are as follows. A person who earns a salary of £25,000 each year will be £20.72 better off each month while someone earning £40,000 will see an extra £45.72 each month and with the cost of living crisis still evident, it will be a welcome post Christmas gift for many.

Weekly newsletter
Sign up to our newsletter to keep updated with the latest insights for the freshest trends and know-how in the career realm.
By submitting, you are agreeing to receive our weekly newsletter. You can unsubscribe at any time if you no longer wish to receive these updates.
Read about our privacy policy.
Thank you! You're now subscribed to the latest news from The UK Careers Fair.
Oops! Something went wrong while submitting the form.

Latest News

Dive into our latest insights for the freshest trends and know-how in the career realm, updated daily.
Careers Advice

How You Can Stand Out To Potential Employers

Isabella Goode
|
Guest Post
September 25, 2024
5 min read
Graduate Advice

How Strong Study Habits Can Lead To Better Outcomes

Isabella Goode
|
Guest Post
September 25, 2024
5 min read

Upcoming Events

Check out our full and comprehensive list of upcoming events.

Bristol Careers Fair
October 16, 2024
Aberdeen Careers Fair
October 16, 2024
Perth Careers Fair
October 17, 2024
Guildford Careers Fair
October 17, 2024
Blackburn Careers Fair
October 17, 2024
Dundee Careers Fair
October 18, 2024
Southampton Careers Fair
October 18, 2024
Manchester Careers Fair
October 18, 2024
Exeter Careers Fair
October 23, 2024
Huddersfield Careers Fair
October 23, 2024
York Careers Fair
October 24, 2024
Gloucester Careers Fair
October 24, 2024
Bournemouth Careers Fair
October 25, 2024
Liverpool Careers Fair
October 30, 2024
Wrexham Careers Fair
October 31, 2024
London Careers Fair
November 15, 2024
Milton Keynes Careers Fair
February 5, 2025
Nottingham Careers Fair
February 12, 2025
Leicester Careers Fair
February 19, 2025
Swindon Careers Fair
February 19, 2025
Swansea Careers Fair
February 20, 2025
Wolverhampton Careers Fair
February 20, 2025
Bath Careers Fair
February 21, 2025
Brighton Careers Fair
February 26, 2025
Durham Careers Fair
February 26, 2025
Middlesbrough Careers Fair
February 27, 2025
Cardiff Careers Fair
February 28, 2025
 TAKE ME THERE