NIM01208 - Class 1 structural overview from April 2009: not contracted-out rate NICs

Section 8 of the Social Security Contributions and Benefits Act 1992 (SSCBA 1992)

Standard rate NICs are paid by those who are included in the State Second Pension (State Earnings Related Pension Scheme (SERPS) before 6 April 2002). The primary element (see NIM01001) is payable at a reduced rate for certain married women and widows. 

Section 8 SSCBA 1992 provides that for the tax year beginning 6 April 2011 onwards:

• the main primary percentage is 12% and
• the additional primary percentage is 2%.

Section 5 of the Health and Social Care Levy Act 2021 provided that for the 2022 to 2023 tax year only, section 8 should be read as if: 

• the main primary percentage was 13.25% and 
• the additional primary percentage was 3.25%. 

The change under section 5 was repealed for payments of earnings made on or after 6 November 2022, see NIM01600 for more information about the 2022 to 2023 tax year. 

Section 1 of the National Insurance Contributions (Reduction in Rates) Act 2023 provides that from the 6 January 2024 onwards, section 8 is amended so that the main primary percentage is 10%. A different rule applies for directors in the 2023 to 2024 tax year. See NIM01625 for more information about the 2023 to 2024 tax year.

Section 1 of the National Insurance Contributions (Reduction in Rates) Act 2024 provides that from 6 April 2024 onwards, section 8 is amended so that the main primary percentage is 8%. This rate also applies for directors from 6 April 2024. 

For details of contracting out rebates that applied up to 5 April 2016, see NIM01209.

For further information about married women’s and widows’ reduced rate NICs, see NIM30000 and NIM31000. 

For information on the structure of primary Class 1 NICs before 6 April 2003, see NIM01000 onwards.

For information on the structure of primary Class 1 NICs from 6 April 2003 and before 6 April 2009, see NIM01100 onwards.