National Insurance and State Pensions

2. Employee Contributions

2.1 Employees pay:

• No contribution if weekly pay is below £105 a week.
• 11 per cent on earnings between £105 and £770 a week in the 2008/09 tax year plus 1 per cent on all earnings over £770 a week. The 11 per cent rate is reduced to 9.4 per cent if the employee is a member of a company pension scheme contracted-out of the State Second Pension.

2.2 There are special rules for some employees.

• Married women and widows who opted for 'reduced liability' before 12 May 1977 pay 4.85 per cent NICs on earnings between £105 and £770 a week, plus 1 per cent on all earnings above £770 a week.
• Employees with more than one job pay NICs for each job that earns more than £105 a week.
• Those over the state pension age do not pay NICs once they provide their employer with a Certificate of Age Exception.