RSS FeedFactsheet: National insurance The Guardian
National insurance contributions are paid by both employers and employees. By doing so employees are entitled to certain benefits, including the state pension . The amount you pay depends on how much you earn and whether you are self-employed or not.
What are the contributions for?NI payments were introduced in 1911 to provide a safety net for workers who fall on hard times. NI is now used to pay for the NHS, sickness and disability allowances, the state pension and unemployment benefit. The revenue is ring-fenced and is meant to be only used for these areas. However, the government can borrow money from the NI fund to pay for other projects.
Your entitlement to some benefits depends on how much you, your spouse or civil partner have paid in contributions.
To receive the full basic state pension you need to have made a set amount of contributions for a certain amount of years. This is 30 years for both men and women. You can calculate what you will be entitled to on the government's State Pension profiler .
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