Budget 2021: National Insurance and Minimum Wage

Following Budget 2021 we have summarised the National Insurance and Minimum Wage rates for 2021/22.

National Insurance – 2021/22 Class 1 (employed) rates

Employee
Earnings per week	%
Up to £184	0
£184.01 – £967	12
Over £967	2

Employer
Earnings per week	%
Up to £170	0
Over £170	13.8

Entitlement to contribution-based beneﬁts for employees retained for earnings between £120 and £184 per week. The employer rate is 0% for employees under 21 and apprentices under 25 on earnings up to £967 per week.

Class 1A (employers)	On employee taxable beneﬁts	13.8%
Class 1B (employers)	On PAYE Settlement Agreements	13.8%
Class 2 (self-employed)	Flat rate per week Small proﬁts threshold	£3.05 £6,515 per annum
Class 3 (voluntary)	Flat rate per week	£15.40
Class 4 (self-employed)	On proﬁts between £9,568 – £50,270 Excess over £50,270	9% 2%

Minimum Wage

Age

NLW

21 – 22

18 – 20

16 and 17

Apprentices

From 1 April 2021

£8.91

£8.36

£6.56

£4.62

£4.30

The adult rate has been lowered to apply to those over 23 years (from aged 25). Apprentice rates apply to those under 19, or 19 or over and in the ﬁrst year of their apprenticeship.