NIM01299 - Class 1 structural overview: abolition of secondary NICs for those employees under the age of 21: assessment
The examples below use the rates that apply for the 2025 to 2026听tax year.
Example 1
A monthly paid employee is under the age of 21 at the time earnings of 拢1,600 are paid. The earnings fall below the Upper Secondary Threshold (UST).
| Threshold | NICs calculation | NICs due |
|---|---|---|
| Primary | 拢1,600听鈭捥�1048 = 拢552听脳 8% | 拢44.16 |
| Secondary | 拢1,600听鈭捥�417 = 拢1,183听脳 0% | 拢0 |
| Total NICs due | 听 | 拢44.16 |
Example 2
A monthly paid employee is under the age of 21 at the time earnings of 拢5,000 are paid. The earnings are above the monthly UST.
| Threshold | NICs calculation | NICs due |
|---|---|---|
| Primary | 拢4,189 - 拢1048 = 拢3,141 x 8% | 拢251.28 |
| Primary | 拢5,000 - 拢4,189 鈭捥�811 脳 2% | 拢16.22 |
| Secondary | 拢4,189 - 拢417 = 拢3,772 x 0% | 拢0 |
| Secondary | 拢5,000 鈭捥�4,189 = 拢811 脳 15% | 拢121.65 |
| Total NICs due | 听 | 拢389.15 |