National Insurance

Everyone under pension age has to pay National Insurance contributions if their earnings exceed £8i a week (this amount changes in April each year).

The contributions are normally 9% of earnings up to £609 a week.

But since October 2009 people on low incomes have paid lower contributions. The current rates are 9% of all your earnings up to £609 a week if you earn £109 or more; 7% on all your earnings if you earn between £7O and £109 a week; and 9 % on all your earnings if you earn between £81 and £70 a week. If you pay into a company pension scheme or, after 1 July 2006, an approved personal pension plan, your contributions will be 8% lower in each case. If you earn below £81 a week you do not pay contributions at all.

If you work after reaching pension age, you should not pay any National Insurance contributions.

Your liability to pay contributions stops on the last payday before you reach that age. You should ask your employer to check that you are not paying contributions for any payday after your sixtieth or sixty-fifth birthdays.

The employer now has to pay contributions for all adult employees earning over £8i week, including those over pension age and married women. However, there are lower rates for employees who earn less than £19 9 a week, but the employer now pays contributions on earnings above the ceiling of £609 as well.

Please remember this website is for informational purposes only and does not constitute professional financial advice.

Find out more about - Working After Pension Age

or Earnings Rules

Working After Pension Age

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