National Insurance
(NI)
National Insurance contributions (NICs) are payments made by employees, employers, and the self-employed to qualify for certain state benefits including the State Pension, Statutory Sick Pay, and Maternity Allowance. Employees pay Class 1 NICs; employers pay employer Class 1 NICs on top; the self-employed pay Class 2 and Class 4 NICs. The number of qualifying years of contributions affects State Pension entitlement.