National Insurance and State Pensions

All earners pay National Insurance contributions (NICs) on their earnings. Employers pay employer contributions for each employee and collect and forward their employees' contributions.

Paying contributions entitles an individual to a state pension. But most people will need to make additional private provisions. This briefing explains:

• Who pays what.
• An employer's responsibilities.
• How to reduce the NICs you pay.
• How NICs affect an individual's entitlements.