The table letter tells employers how much National Insurance an individual needs to contribute.
In order for umbrella employers to run their payroll they need to work out the National Insurance that you and they need to contribute. To do this, they use a table letter.
For 2024/25, most employees have category letter A on their payslip. This means that from 6th April 2024, Employer National Insurance and Employees National Insurance is charged on amounts above the primary / secondary thresholds at 13.8% and 8% respectively. Amounts that come in above the upper earnings limit are capped at 2% for employees.
Employee National Insurance rates
This table shows how much employers deduct from employees’ pay from 6 April 2024 to 5 April 2025.
Class 1 National Insurance rates
Employee (primary) contribution rates
Deduct primary contributions (employee’s National Insurance) from your employees’ pay through PAYE.
| National Insurance category letter | Earnings at or above lower earnings limit up to and including primary threshold | Earnings above primary threshold up to and including upper earnings limit | Balance of earnings above upper earnings limit |
| A | 0% | 8% | 2% |
| B | 0% | 3.85% | 2% |
| C | nil | nil | nil |
| D | 0% | 2% | 2% |
| E | 0% | 3.85% | 2% |
| F | 0% | 8% | 2% |
| H | 0% | 8% | 2% |
| I | 0% | 3.85% | 2% |
| J | 0% | 2% | 2% |
| K | nil | nil | nil |
| L | 0% | 2% | 2% |
| M | 0% | 8% | 2% |
| N | 0% | 8% | 2% |
| S | Nil | Nil | Nil |
| V | 0% | 8% | 2% |
| Z | 0% | 2% | 2% |
Employer (secondary) contribution rates
| National Insurance category letter | Earnings at or above lower earnings limit up to and including secondary threshold | Earnings above secondary threshold up to and including Freeport and Investment Zone upper secondary thresholds | Earnings above Freeport and Investment Zone upper secondary thresholds up to and including upper earnings limit, upper secondary thresholds for under 21s, apprentices and veterans | Balance of earnings above upper earnings limit, upper secondary thresholds for under 21s, apprentices and veterans |
| A | 0% | 13.8% | 13.8% | 13.8% |
| B | 0% | 13.8% | 13.8% | 13.8% |
| C | 0% | 13.8% | 13.8% | 13.8% |
| D | 0% | 0% | 13.8% | 13.8% |
| E | 0% | 0% | 13.8% | 13.8% |
| F | 0% | 0% | 13.8% | 13.8% |
| H | 0% | 0% | 0% | 13.8% |
| I | 0% | 0% | 13.8% | 13.8% |
| J | 0% | 13.8% | 13.8% | 13.8% |
| K | 0% | 0% | 13.8% | 13.8% |
| L | 0% | 0% | 13.8% | 13.8% |
| M | 0% | 0% | 0% | 13.8% |
| N | 0% | 0% | 13.8% | 13.8% |
| S | 0% | 0% | 13.8% | 13.8% |
| V | 0% | 0% | 0% | 13.8% |
| Z | 0% | 0% | 0% | 13.8% |
Glossary
Category Letters
A – All employees apart from those in groups B, C, H, J, M, V and Z in this table
B – Married women and widows entitled to pay reduced National Insurance
C – Employees over the State Pension age
H – Apprentice Under 25
J – Deferment
M – Under 21
V – Veterans standard
Z – Under 21 deferment
Category letters for employees who work in freeports
F – All employees who work in freeports, apart from those in groups I, L, and S in this table
I – Married women and widows who work in freeports and are entitled to pay reduced National Insurance
L – Employees who work in freeports and can defer National Insurance because they’re already paying it in another job
S – Employees who work in freeports and are over the State Pension age
Category letters for employees who work in investment zones
N – All employees who work in investment zones, apart from those in groups E, D and K in this table
E – Married women and widows who work in investment zones and are entitled to pay reduced National Insurance
D – Employees who work in investment zones and can defer National Insurance because they’re already paying it in another job
K – Employees who work in investment zones and are over State Pension age
Category letters X
Employers use category letter X for employees who do not have to pay National Insurance, for example because they’re under 16.