The rate of employer's National Insurance contributions is confirmed at 12.8% and the rate for employees at 11%, with a 1% surcharge on earnings in excess of £595 per week.
Levels of National Insurance contributions for tax year 2003/2004 were set as follows:-
The Primary Threshold (ie. the threshold above which employee's NI contributions are payable) is confirmed at £89 per week. The upper limit is increased to £595 per week (£30,940 per annum).
The Secondary Threshold (ie. the level of an employee's earnings at which the employer begins to pay NI contributions) is confirmed at £89 per week.
The Class 4 rate is 8% of profits between £4,615 pa and £30,940 pa with a 1% surcharge on profits in excess of £30,940. The Class 2 flat-rate contribution remains at £2 per week and becomes due when profits reach £4,095 pa.
4. VOLUNTARY CONTRIBUTIONS
The flat-rate of Class 3 voluntary contributions is raised to £6.95 per week.