national insurance contributions

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National Insurance Contributions

Deductions from paychecks or other payments made to National Insurance in the United Kingdom. National Insurance pays for the state pension, unemployment benefits and also funds the National Health Service. Both employees and employers must make National Insurance contributions, and employers must make further contributions on certain employee benefits. They do not fund other government functions, but the government may borrow against them.

national insurance contributions

the payments made by employers and their employees to the UK government up to a specified maximum limit. National insurance contributions, together with other government budgetary receipts, are used to finance state pensions, sick pay, jobseekers allowance, etc.

There are currently (2005) four classes of national insurance contributions; Class 1 (employees/employers), Class 2 and 4 (self-employed) and Class 3 (voluntary organizations). Under the most common class, Class 1, contributions are paid by employees at the rate of 11% on weekly earnings between £89 (minimum) and £585 (maximum); employers' contributions are paid at the rate of 12.2% on weekly earnings of employees greater than £84, with no upper limit. See BUDGET (GOVERNMENT), SOCIAL SECURITY BENEFITS.

national insurance contributions

the payments made by employers and their employees to the UK government, on a two-thirds and one-thirds basis respectively up to a specified maximum limit. National insurance contributions, together with other government budgetary receipts, are used to finance state pensions, social security benefits, the JOBSEEKERS ALLOWANCE, etc. See BUDGET ( GOVERNMENT).
References in periodicals archive ?
Projections indicate that the long-term benefit expenditure is expected to exceed National Insurance contribution receipts by an increasing amount, equivalent to around 1% to 1.3% of GDP because of the:
IN REDUCING National Insurance contributions, the cost of creating new jobs will become cheaper - the manufacturing jobs that we currently have would be easier to maintain with lower employers' NI contributions.
If a person is unable to work and pay national insurance contributions, the national insurance scheme may provide protection for her/him in the form of credited contributions.
While the Budget saw the announcement of a new scheme that allows small businesses, as well as others, to not pay the first PS2,000 of their National Insurance Contributions, UHY Hacker Young warns it is not as generous for them as the holiday scheme.
A Possibly, if between the ages of 17-22 you earned over the minimum threshold to pay National Insurance contributions. The best way to find out is to request a state pension forecast on 0845 300 0168 as HMRC will have a full record of your NI contribution history.
When it expired in October she applied for sick pay from the Government but she was refused this as she was missing 21 national insurance stamps dating back to 2005 when she was not earning enough to make national insurance contributions.
Q: I have worked and paid National Insurance contributions for 36 years and I reach 65 in 2010.
The idea of using National Insurance contributions as a means of providing assistance to firms is a laudable one.
Changes to National Insurance contributions are also being introduced, which will see the earnings ceiling at which the 11% rate falls to 1% increased from pounds 670 a week to pounds 770 a week.
The National Pensioners Convention (NPC) said 1.87 million women aged between 60 and 69 did not receive any state pension because they lacked the minimum 25 per cent of National Insurance contributions they needed to qualify for it.
He added that National Insurance contributions need to be made only if more than pounds 91 per week is earned.
Under new rules, they can claim up to 25 per cent of gratuities to cover national insurance contributions.

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