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All taxes

Tax 2 of 8

National Insurance Contributions

Monthly

£14bn

Share of receipts

21.7%

Per household

£467

Per person

£206

What it buys

  • State Pension record

  • Contributory benefits

  • NHS allocation

Every worker earning above the primary threshold, plus every employer with a payroll.

exact ONS/HMRC/MHCLG/PSS fields

Employer contributions

£7.9bn

56.4% · £263/household

  • Class 1 secondary
  • Payroll levy

Employee contributions

£5.3bn

37.9% · £177/household

  • Class 1 primary

Self-employed and voluntary

£0.8bn

5.7% · £27/household

  • Class 2
  • Class 4
  • Voluntary Class 3

Employee NICs were cut from 12% to 8% during 2024, reducing receipts even as wages grew.

Employers pay secondary Class 1 contributions on top of every salary.

NICs flow into the National Insurance Fund, which is legally separate from general taxation.