National insurance for employees and employers

National insurance for employees and employers

Employees pay class 1 National Insurance.

Employers are responsible for deducting income tax and National Insurance from employee’s wages. The employer pays the amounts deducted to HMRC each month. National Insurance for employees has two parts: the employee’s National Insurance Contributions – a deduction from gross pay; and employer’s National Insurance Contributions, a cost borne by the employer in addition to the gross pay.


Only working people between the ages of 16 and state retirement age have to pay National Insurance. Employers continue to pay National Insurance after the employee reaches the state retirement age.

TaxAid Tip

The state retirement is rising.  It is important to check the date you become entitled to your state pension and tell your employer if you think National Insurance is being deducted when you are not liable to pay.