NIM10067 - Aggregation of earnings: calculation and recording: NICs due at main rate: same earnings period
All examples on this page use the 2025鈥痶o 2026 rates and earnings bands. National Insurance Contributions (NICs) are worked out using the exact percentage method.听
When calculating aggregated NICs,鈥疦ICs are worked out on the total earnings using the shortest earnings period.听
Employee鈥檚 NICs are worked out at:听
the main percentage rate on any earnings above the Primary Threshold (PT) up to and including the Upper Earnings Limit (UEL)听
the additional percentage on earnings which exceed the UEL听
Employer鈥檚 contributions are worked out at the main secondary percentage rate on earnings which exceed the Secondary Threshold (ST).听
贰虫补尘辫濒别听
An employee鈥痚arns 拢500 per week from one job, and 拢400 per week from another. Total earnings are 拢900 per week and the earnings period is weekly.听
| NICs type | NICs due | Table letter |
|---|---|---|
| Employee's NICs | 拢52.64 | A |
| Employer's NICs | 拢120.60 | A |
听
Recording the NICs due on Real Time Information (RTI)
Payroll software only records category letters where NICs is paid on earnings between the Lower Earning Limit (LEL) and the UEL. The figures will be recorded under contribution Table letter A. The entries on RTI for week 1 of 2025to 2026鈥痺ill be as follows.听
Week 1
| Data item | Description | 听 |
|---|---|---|
| 79 | NI category | A |
| 79A | Gross earnings for NICs year to date | 拢900 |
| 79B | Gross earnings for NICs pay period | 拢900 |
| 82 | Earnings at the LEL year to date | 拢125 |
| 82A | Earnings at LEL to PT year to date | 拢117 |
| 169 | Earnings PT to UEL year to date | 拢658 |
| 86A | Employer NICs year to date | 拢120.60 |
| 86Aa | Employer NICs this pay period | 拢120.60 |
| 86B | Employee NICs year to date | 拢52.64 |
| 86Ba | Employee NICs this period | 拢52.64 |
| 49 | Aggregated earnings indicator | Yes |