Everybody gets a National Insurance card sent to them just before their 16th birthday. You’ll need to let your employer know your national insurance details when you start work.
Once you’re earning over a certain amount you’ll start to ‘earn’ National Insurance contributions and make a contribution too. National Insurance contributions are made to provide you with benefits at times when you are unable to work. The most common of these are contributory Jobseeker’s Allowance, Statutory Sick Pay, Statutory Maternity Pay and State Retirement Pension.
You’ll pay National Insurance as follows:
- If you earn above £100.00 a week (the 'earnings threshold') and up to £670.00 per week you pay 11 per cent of this amount as 'Class 1' National Insurance Contributions
- You also pay one per cent of earnings above £670.00 a week as Class 1 National Insurance Contributions
- You’ll pay a lower amount as an employee if you are a member of your employer's contracted out pension scheme.
National Insurance gives you more information.
Your employer has a legal responsibility to deduct your National Insurance contributions from your wages along with Income Tax and pass it to the Inland Revenue. These rates and other allowances are reviewed each year by the Chancellor of the Exchequer and changes announced in the annual Budget.
You can use the library in your Connexions Centre too as it has information for you to read or take away. Go to Weblinx for more useful websites.