Class 1 - Employed persons

Class 1 Contribution Rates

Calculated as % of gross earnings

Employer

Employee

2010

2009

2010

2009

Full rate

6.5%

6.5%

6.0%

6.0%

Employer only

6.5%

6.5%

0.0%

0.0%

Upper and Lower Earnings Limits for Class 1 Contributors

Weekly

Monthly

2010

2009

2010

2009

Lower Earnings Limit

£114.00

£112.00

£494.00

£485.33

Upper Earnings Limit

£1,536.00 (employees) £2,259.00 (employers)

£1,329.00 (employees)
£2,214.00 (employers)

£6,656.00 (employees) £9,789.00 (employers)

£5,759.00
(employees)£9,594.00 (employers)

Maximum Weekly/Monthly Contributions for Class 1 Contributors

Weekly

Monthly

Maximum Contribution

2010

2009

2010

2009

Employees

£92.16

£79.74

£399.36

£345.54

Employers

£146.84

£143.91

£636.28

£623.61

Meaning of terms:

Gross earnings are the total wages or salary earned before any deductions are made.
Employer only is payable by employers in respect of employees who are aged 65 or over.
Lower Earnings Limit is the level of earnings at which, in respect of an employed person, employee and employer become liable for the payment of contributions.
Upper Earnings Limit is the highest level of earnings on which contributions are calculated.