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Payment of Contributions and Levies

Dear Self-Employed Person

The rate for voluntary contributors in 2004 is 8.3% made up as follows:

Voluntary - "Z"
Funds and Levies
2003200420052006
% % % %
National Insurance5.306.307.308.30
Non-contributory2.002.002.002.00
TOTAL7.308.309.3010.30
Change in the National Insurance Contribution Rate for Private Sector Employees

As a consequence of Pension Reform, the National Insurance and Social Security (Collection of Contributions) Regulations were amended in December 2002 to provide for an increase in contribution rates payable in respect of private sector employees for the years 2003 to 2006.

The rate of contribution payable for 2004 is 19.25% made up as follows:

Private Sector Employees - "R"
Funds and LeviesEmployeeEmployerTotal
% % %
National Insurance5.755.7511.50
Non-contributory 2.002.004.00
Unemployment0.750.751.50
Employment Injury0.000.750.75
Severance0.000.500.50
Training Levy0.500.501.00
TOTAL9.0010.2519.25

The rate payable in respect of apprentices for 2004 is 18.75% made up as follows:

Apprentices
Funds and LeviesEmployeeEmployerTotal
% % %
National Insurance5.755.7511.50
Non-contributory 2.002.004.00
Unemployment0.750.751.50
Employment Injury0.000.750.75
Training Levy0.500.501.00
TOTAL9.009.7518.75
Please note that the new rate should take effect on 1st January for monthly paid employees and 5th January for weekly paid.