Class 1 National Insurance

2 min read

Class 1 National Insurance (NI) is a tax that you pay when you’re employed. There are multiple types of National Insurance that we’re liable to pay in the UK, depending on our employment status.

Take a look at the different types below:

Class of National Insurance	Who pays?	How do you pay?
Class 1	Employees who are under state pension age and earning >£184 per week	Automatically deducted by your employer from your salary – entitles you to claim JSA
Class 1A/1B	Employers	Deducted from employees’ benefits and expenses
Class 2	Self-employed earning >£6,515 per year	Paid via a tax return
Class 3	Anyone	Paid in voluntary contributions to clear any gaps in your NI
Class 4	Self-employed earning >£9,568 per year	Paid via a tax return

How does it work?

It’s 12% of your salary after you start earning £184 per year. This amount then drops to 2% once you earn over £50,270 a year.

Earning over £50,270 makes you a Higher Rate earner.

What you need to remember about Class 1 National Insurance

You don’t need to pay this yourself – your employer will automatically take it out of your salary every month via PAYE
On top of Class 1 NI, there is a separate contribution that employers pay: Class 1A or Class 1B
Class 1A/1B don’t come out of your salary, they are your employer’s responsibility
Your employer will deduct Class 1 NI even if you earn under the Personal Allowance
If you’re both employed and self-employed (e.g. you have a side gig), you’ll pay both Class 1 NI and Class 2 (and maybe even Class 4) NI

To calculate the National Insurance that you’re liable to pay, take a look at our employed and self-employed calculator.

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How does it work?

What you need to remember about Class 1 National Insurance

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