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National Insurance What I am Paying for

National Insurance: What I am Paying for

National Insurance What I am Paying for

National Insurance (NI) in the United Kingdom is a system of contributions paid by workers and employers to qualify for certain benefits. The national insurance scheme is administered by HM Revenue and Customs (HMRC).

National Insurance Number

A National Insurance number (NINO) is a number unique to you which is used to keep track of your National Insurance contributions and the benefits which you are paid. The number is made up of two letters, six numbers and one letter, for example, AB 123456 C.

National Insurance Contribution (NIC) Classes & Rates

The class you pay depends on your employment status and how much you earn, and whether you have any gaps in your National Insurance record.

What National Insurance for

National Insurance contributions count towards the benefits and pensions in the table. Class 4 contributions paid by self-employed people don’t usually count towards state benefits.

Benefits Class 1: employees Class 2: self-employed Class 3: voluntary contribution
Basic State Pension Yes Yes Yes
Additional State Pension Yes No No
New State Pension Yes Yes Yes
Contribution-based Jobseeker’s Allowance Yes No No
Contribution-based Employment and Support Allowance Yes Yes No
Maternity Allowance Yes Yes No
Bereavement Support Payment Yes Yes No

 More information you can find on GOV.UK website.