Commentary on Sections Classes of National Insurance contributions
1191.There are six classes of National Insurance contributions – only three count towards qualifying years for retirement pensions:
	Class 1 – paid by employed earners and their employers. Employees pay these if they work for an employer and earn more than the employees’ primary threshold. The employer also pays National Insurance contributions for the employee if they earn more than the employers’ primary threshold. There is no upper limit on the employer’s National Insurance contributions. Some married women and widows can still pay their National Insurance contributions at a reduced rate.
	Class 2 – paid by self-employed people. Paid at a flat-rate.
	Class 3 – voluntary contributions which may be paid to protect a person’s National Insurance record in some circumstances. Paid at a flat rate. Class 3 contributions can be paid for previous years to enable someone either to qualify for a basic retirement pension at the minimum rate or to increase the rate of the basic retirement pension for which they have qualified. Any arrears of contributions paid after pensionable age cannot normally count for payment of retirement pension from a date earlier than the day on which the contributions were paid. Married women and widows cannot pay Class 3 contributions for any tax year in which they had reduced rate liability for the whole year.