Class 3 - Non-employed persons (including those over 65)

Class 3 contribution rates and limits

2010

2009

Annual upper income limit

£79,872/annum

£69,108/annum

Annual lower income limit

£14,820/annum

£14,560/annum

Class 3 income allowance*

£6,290/annum

N/A

Maximum weekly contribution**

  • Full rate (under 65)

£140.09/week (9.9%)

£131.57/week (9.9%)

  • Specialist health and long-term care only (aged 65 or over)

£41.04/week (2.9%)

£34.55/week (2.6%)

* From 1 January 2010, the Class 3 income allowance will be subtracted from the annual income figure of people who are liable to pay non-employed contributions.  Liability will be calculated on the balance.

** Non-employed persons who expect their income to be less than the annual upper income limit can apply to have their rate of contribution based on their income rather than paying the maximum rate.  (For further information, click on the guide for non-employed persons to the right).

Special rate Class 3 contributions

2010

2009

Full rate contributions

£16.24/week

£15.96/week

Meaning of terms:

Annual upper income limit is the highest level of income on which contributions are calculated.

Annual lower income limit is the level of income at which non-employed persons become liable to pay contributions.

The special rate non-employed contribution is payable by insured persons who would normally rely upon employed contributor's employment for their livelihood, but have a small gap in their record where they were neither employed nor receiving an unemployment credit.