In general, all salary and wage payments to employees are classed as earnings for National Insurance purposes. There are three principal exceptions:
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If you are in receipt of state pension, you do not need to make further contributions. To prove you have reached state pension age you must provide proof in the form of a birth certificate or a valid passport. If we already hold these documents we will not ask you to resubmit them.
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If maximum National Insurance contributions in any particular pay period have already been deducted in another employment, then no further employee's National Insurance contributions need be deducted from university pay in the same period. We require proof in the form of a CA2700 certificate (obtainable from the Department of Work and Pensions) in these circumstances. This certificate is renewable annually and you need to send your updated certificates to the Payroll and Pensions Department.
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If earnings are below the earnings threshold (ET) for National Insurance purposes, there will be no liability to pay National Insurance contributions by the employee or by the employer.
How much National Insurance do I have to pay?
The level of National Insurance contribution depends on:
The university, as an employer, is liable to pay contributions on all earnings above the earnings threshold. Your liability as an employee, however, reduces once your earnings have reached the upper earnings limit (UEL) – currently £4,167 per month (2019/20).
National Insurance contributions by earnings band
| Earning band | Employee Table A | Employee Table C | Employer |
|---|
| Earnings up to £719 per month |
0% |
0% |
0% |
| Earnings above £719 up to £4,167 per month |
12% |
0% |
13.8% |
| Earnings over £4,167 per month |
2% |
0% |
13.8% |
Table A: under state pension age. Table C: over state pension age.
National Insurance number
Your National Insurance number represents your account number with the government. All National Insurance contributions are credited against that account. The ‘balance’ on this account is then used to determine entitlement to certain social security benefits. It is therefore important that you quote your number correctly in all correspondence relating to National Insurance.
If you don’t know your National Insurance number or don’t have one, you need to contact your local Department for Work and Pensions office.