SECTION E: TAX AND NATIONAL INSURANCE
National Insurance
Rates of National Insurance are:
0% on income up to £153 per week or £663 per month.
12% (contracted out 10.6%) on income between £153 and £805 per week
or between £663 and £3488 per month.
2% on income over £805 per week or over £3488 per month.
If an employee has entered a final salary occupational pension scheme, the employee may ‘contract out’ and pay National Insurance at a lower rate. In this case, the employee will receive, from the state, only the basic state retirement pension.