Class 1 National Insurance

Employers deduct Class 1 National Insurance from employees who earn over a certain amount every week and who are under State Pension age. This represents their contribution towards certain State benefits including State Pension. There is a lower weekly threshold whereby the employee does not pay the contribution, however, may still qualify for certain benefits and the State Pension.  For earnings below the lower threshold, the employee can pay voluntary Class 3 contributions to cover gaps in their National Insurance record.