National Insurance (NI)

In recruiter context

Most UK employees pay Class 1 NI at 8% on earnings between £242 and £967 per week (2024-25 rates), plus 2% above that. Employers also pay 13.8% NI on most earnings — a hidden cost when negotiating total compensation. Self-employed pay Class 2 (£3.45/week if profits exceed £6,725) and Class 4 (6% on profits £12,570-£50,270, 2% above). NI contributions earn 'qualifying years' for State Pension — 35 years required for full new State Pension. Most employees don't think about NI until they check their pension forecast.