National Insurance Contributions – NICs

How are on NICs represented on the Rota?

1.1    Employers legally contribute towards employee’s national insurance.

1.2    We calculate every employee’s individual national insurance and add it onto their weekly cost.

1.3    This figure is highlighted on the rota by the red circle.

Rules for National Insurance

2.1    Only employees earning over £166 a week are eligible to pay National Insurance contributions.

2.2    Any income earned over £166 and under £962 is subject to a 13.8% deduction for national insurance contributions.

2.3    National Insurance (unless otherwise stated) is calculated before holiday accrual, under cost, circled in red.

More information regarding National Insurance contributions can be found on the DirectGov website.

Example

Employees weekly base cost: £300

NIC calculation:

£0-£162 x 0%                                                                    Total Cost

£300 - £166 = £134

                                                                                         £300 + £18.49 = £318.49

£134 x 13.8% = £18.49

(Employee is paid 13.8% of £134)