National Insurance contributions represent a fixed weekly payment, determined in relation to the wages or salary of the insured person. Salaries and wages are structured into 16 earnings classes, each of which identifies assumed average weekly earnings.
Contributions are calculated on the basis of contribution weeks, commencing at midnight on Sunday. For workers who are paid monthly, the number of contribution weeks in the month will fluctuate between four and five, determined by the number of Mondays in the month.
The National Insurance Act 1971 Chap 32:01, s 70(1) states the need for a regular actuarial review. The 10th Actuarial review, s A1.4 raised the total contribution rate from 12–13.2% of average weekly insurable earnings from 5 September 2016, shared between the employee and the employer at a rate of 2:1. Subsequently laid before Parliament by the minister, the changes were adopted into the Finance (No 2) Act 2016 and published via the NIBTT media release.
The actual contributions, however, are not calculated as an exact percentage
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Web page updated on 28 Aug 2024 12:12