E8.259 Class 1 contributions—overview
Class 1 contributions are the principal source of income of the National Insurance Fund, and employee contributions count towards entitlement to certain contributory benefits. They are payable by all employees, whether male or female, between the ages of 16 and 'pensionable age' (see E8.269), provided in each case that the earnings exceed the primary earnings threshold. However, contributions are currently payable by the employee on earnings which exceed the upper earnings limit only at the 'additional rate' (see T8.101 for rates and E8.261). Before 6 April 2016 the rates of contribution varied according to whether the employee was 'contracted out' of the earnings-related element of the State pension scheme (SERPS,
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Web page updated on 17 Mar 2025 17:35