Class 1 (2008 / 09)

Employees Earnings:
(Not Contracted out of State Second Pension S2P)
Employer
Employee
Lower earnings limit
-
£90
First £105 per week
nil
nil
£105.01 to £770 per week
12.8%
11%
Over £770 per week
12.8%
1%
Men over 65 & Women over 60
12.8%
nil

Earnings:
(Contracted out S2P Rebate)
.
Employers' contracted-out rebate (salary-related schemes)
3.7%
Employers' contracted-out rebate (money-purchase schemes)
1.4%
Employee rate reduction
1.6%
Married women's reduced rate between £105 and £770
4.85%

Class 1A: Employees on benefits in kind: 
0%
Class 1A: Employers on benefits in kind: 
12.8%
Class 1B: Employers on PAYE Settlement Agreements: 
12.8%
Class 2: Self-employed flat rate: 
£2.30 per week
Class 2 contributions - share fishermen
£2.95 per week
Class 2 contributions - volunteer development workers
£4.50 per week
Class 2 - Limit of net earnings for exception
£4,825 per annum
Class 3: Voluntary: 
£8.10 per week
Class 4: Self employed on profits:
see below

Profits:
Percentage
Below £5,435 *
0%
Between £5,435 and £40,040 *
8%
Above £40,040 *
1%

* Exempt if state retirement age was reached by 6th 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 per year

Self employed: Class 4 increase compared to 2007/08 (up to upper limit £404.50 (16.3%))

Please note
- 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 national insurance contributions payable, but employers' contributions remain payable.