04: Employers

Employers pay 12.8% NIC on all remuneration paid to non-contracted out employees above the contributions threshold. There is no upper limit to earnings and no age limit.

Where employees are contracted out, the employer’s NIC rate is reduced for earnings between the contributions threshold and the upper earnings limit. The reduction is 3.7% where employees are members of salary-related pensions schemes and 1.4% for money-purchase schemes.

Employers also have to pay 12.8% NIC on all taxable benefits in kind provided to employees.