National Insurance on your payslip
National Insurance is the second deduction on most payslips. See what it is for and how it is worked out each payday.
This path is practice in how the records and the sums work. It is not tax advice. Any rate or allowance in a question is an example for that question, so check GOV.UK for the current figures.
In this room: 3 tasks, 9 questions
- What National Insurance is4 questions
- A separate sum from income tax3 questions
- Your employer pays too2 questions
National Insurance is a deduction that is separate from income tax. Paying it builds up your right to the State Pension and to some benefits.
You pay it only on pay above a set amount in each pay period. Each payday is worked out on its own.
The amounts in this room are made up for practice. Here, nothing is due on the first £1,100 of the month, and 10% is due on the rest.
| Item | Amount |
|---|---|
| Gross pay | 2,500.00 |
| Income tax | (300.00) |
| National Insurance | ? |
Answer the questions below
3 more questions follow in this task.
Income tax and National Insurance are two sums. Each has its own starting amount and its own rate.
Because each payday stands alone, a month of low pay can mean no National Insurance at all.
Answer the questions below
2 more questions follow in this task.
Your employer pays its own National Insurance on your pay. It is a cost to the employer, on top of your wages.
Some payslips show the employer's figure for information. It is never taken from your pay.
Answer the questions below
1 more question follows in this task.