The National Insurance Rise 2022
From 6th April 2022 to 5th April 2023 National Insurance contributions will increase by 1.25%. For example, this will take Class 1 National Insurance from 12% to 13.25%. The rise will be used to be spent on the NHS, health and social care in the UK.
The increase will apply to:
- Class 1 (paid by employees)
- Class 4 (paid by self-employed)
- Secondary Class 1, 1A and 1B (paid by employers)
The increase will not apply if you are over the State Pension age.
Class 1 National Insurance thresholds
You can only make National Insurance deductions on earnings above the lower earnings limit.
| Class 1 National Insurance thresholds | 2022 to 2023 |
|---|---|
| Lower earnings limit | £123 per week £533 per month £6,396 per year |
| Primary threshold | £190 per week £823 per month £9,880 per year |
| Secondary threshold | £175 per week £758 per month £9,100 per year |
| Freeport upper secondary threshold | £481 per week £2,083 per month £25,000 per year |
| Upper secondary threshold (under 21) | £967 per week £4,189 per month £50,270 per year |
| Apprentice upper secondary threshold (apprentice under 25) | £967 per week £4,189 per month £50,270 per year |
| Veterans upper secondary threshold | £967 per week £4,189 per month £50,270 per year |
| Upper earnings limit | £967 per week £4,189 per month £50,270 per year |
Class 1 National Insurance rates
Employee (primary) contribution rates
Deduct primary contributions (employee’s National Insurance) from your employees’ pay through PAYE.
| National Insurance category letter | Earnings at or above lower earnings limit up to and including primary threshold | Earnings above the primary threshold up to and including upper earnings limit | Balance of earnings above upper earnings limit |
|---|---|---|---|
| A | 0% | 13.25% | 3.25% |
| B | 0% | 7.1% | 3.25% |
| C | nil | nil | nil |
| F (Freeport) | 0% | 13.25% | 3.25% |
| H (apprentice under 25) | 0% | 13.25% | 3.25% |
| I (Freeport – married women and widows reduced rate) | 0% | 7.1% | 3.25% |
| J | 0% | 3.25% | 3.25% |
| L (Freeport – deferment) | 0% | 3.25% | 3.25% |
| M (under 21) | 0% | 13.25% | 3.25% |
| S (Freeport – state pensioner) | nil | nil | nil |
| V (veteran) | 0% | 13.25% | 3.25% |
| Z (under 21 – deferment) | 0% | 3.25% | 3.25% |
Employer (secondary) contribution rates
You pay secondary contributions (employer’s National Insurance) to HMRC as part of your PAYE bill.
Pay employers’ PAYE tax and National Insurance.
| National Insurance category letter | Earnings at or above lower earnings limit up to and including secondary threshold | Earnings above secondary threshold up to and including Freeport upper secondary threshold | Earnings above Freeport upper secondary threshold up to and including upper earnings limit, upper secondary thresholds for under 21s, apprentices and veterans | Balance of earnings above upper earnings limit, upper secondary thresholds for under 21s, apprentices and veterans |
|---|---|---|---|---|
| A | 0% | 15.05% | 15.05% | 15.05% |
| B | 0% | 15.05% | 15.05% | 15.05% |
| C | 0% | 15.05% | 15.05% | 15.05% |
| F (Freeport) | 0% | 0% | 15.05% | 15.05% |
| H (apprentice under 25) | 0% | 0% | 0% | 15.05% |
| I (Freeport – married women and widows reduced rate) | 0% | 0% | 15.05% | 15.05% |
| J | 0% | 15.05% | 15.05% | 15.05% |
| L (Freeport – deferment) | 0% | 0% | 15.05% | 15.05% |
| M (under 21) | 0% | 0% | 0% | 15.05% |
| S (Freeport – state pensioner) | 0% | 0% | 15.05% | 15.05% |
| V (veteran) | 0% | 0% | 0% | 15.05% |
| Z (under 21 – deferment) | 0% | 0% | 0% |
