NATIONAL INSURANCE
NI category letters, explained.
The NI category letter on your payslip tells your employer which rate to apply. Most employees are Category A, but the other letters cover specific groups with different rates.
Educational estimates only. Not tax, legal, financial, payroll or employment advice. Verify with your employer's payroll team or HMRC.
Related
Common questions
What does NI category A mean?
Category A is the standard rate for most UK employees aged 16 to State Pension age. Employee NI is 8 percent on earnings between the Primary Threshold (£12,570 a year) and the Upper Earnings Limit (£50,270), then 2 percent above that. Most workers will see A on their payslip.
When does category B apply?
Category B is for married women and widows entitled to pay reduced-rate NI. It is rare today because the entitlement was largely closed to new claimants in 1977; only women who already held the right keep it. The reduced employee rate is 1.85 percent.
What is category C?
Category C applies to employees over State Pension age who have already reached qualifying contributions. Employees in this category pay no NI (zero rate). The employer still pays secondary NI at the normal rate.
Why might my category be wrong?
A new starter with an out-of-date HR record, an employer mistake, or a missed change at State Pension age. If your category looks wrong, ask payroll to check the date you last changed status and request a correction. Any overpaid NI is refundable via HMRC on form CA8480.
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Open the toolPayslipIQ provides educational information and estimated calculations only. It does not provide tax, legal, financial, payroll, accounting, pension, benefits or employment advice. Always verify your payslip, tax code, deductions and take-home pay with your employer's payroll department, HMRC, your pension provider, a qualified accountant, tax adviser or another appropriately qualified professional.