National Insurance is money collected from income contributions paid by workers and employers towards the cost of certain state benefits.
Example
Ali has to pay National Insurance on \(\pounds23\,000\) of earnings in a year. The National Insurance Contribution rate is \(12\%\). How much does he have to pay each month?
Answer
\(12\%\;of\;23\,000 = \pounds2\,760\)
Payment each month \( = 2760 \div 12 = \pounds230\)
Now try this question:
Question
Brian has to pay National Insurance on \(\pounds19\,000\) of earnings in a year. The National Insurance Contribution rate is \(12\%\). How much does he have to pay each month?
\(12\%\;of\;19\,000 = \pounds2\,280\)
Payment each month\( = 2280 \div 12 = \pounds190\)