NIM01208 - Class 1 structural overview from April 2009: not contracted-out rate NICs

Section 8 of the Social Security Contributions and 51²è¹Ý Act 1992 (SSCBA 1992)

NICs are paid at the same rate by those who are included in the New State Pension, following the ending of contracting-out of the State Second Pension (State Earnings Related Pension Scheme (SERPS) before 6 April 2002) on 5 April 2016.

The primary contribution element (see NIM01001) is payable at a reduced rate for certain married women and widows.Ìý

Section 8 SSCBA 1992 provides that for the tax year beginning 6 April 2011 onwards:

  • the main primary percentage is 12% and
  • the additional primary percentage is 2%.

Section 5 of the Health and Social Care Levy Act 2021 provided that for the 2022 to 2023 tax year only, section 8 should be read as if: 

  • the main primary percentage is 13.25% and 
  • the additional primary percentage is 3.25%.Ìý

The change under section 5 was repealed for payments of earnings made on or after 6 November 2022, see NIM01600 for more information about the 2022 to 2023 tax year.Ìý

Section 1 of the National Insurance Contributions (Reduction in Rates) Act 2023 provides that from the 6 January 2024 onwards, section 8 is amended so that:

  • the main primary percentage is 10%.
  • the additional primary percentage is 2%

A different rule applies for directors in the 2023 to 2024 tax year. See NIM01625 for more information about the 2023 to 2024 tax year.

Section 1 of the National Insurance Contributions (Reduction in Rates) Act 2024 provides that from 6 April 2024 onwards, section 8 is amended so that:

  • the main primary percentage is 8%.Ìý
  • the additional primary percentage is 2%

This rate also applies for directors from 6 April 2024.Ìý

For details of contracting out rebates that applied up to 5 April 2016, see NIM01209.

For further information about married women’s and widows’ reduced rate NICs, see NIM30000 and NIM31000.Ìý

For information on the structure of primary Class 1 NICs before 6 April 2003, see NIM01000 onwards.

For information on the structure of primary Class 1 NICs from 6 April 2003 and before 6 April 2009, see NIM01100 onwards.