The table letter tells employers how much National Insurance an individual needs to contribute.
In order for umbrella employers to run their payroll they need to work out the National Insurance that you and they need to contribute. To do this, they use a table letter.
For 2023/24, most employees have category letter A on their payslip. This means that from 6th January 2024, Employer National Insurance and Employees National Insurance is charged on amounts above the primary / secondary thresholds at 13.8% and 10% respectively. Amounts that come in above the upper earnings limit are capped at 2% for employees.
The decrease in National Insurance will apply to:
- Class 1 (paid by employees) from 12% to 10% from 6th January 2024
- Class 4 (paid by self-employed) from 9% to 8% from 6th April 2024
- Removal of Class 2 National Insurance from 6th April 2024
The full National Insurance table letter categories for 2023/24 are as follows.
Employee National Insurance rates
This table shows how much employers deduct from employees’ pay from 6 April 2023 to 5 January 2024.
| Letter | £123 to £242 (£533 to £1,048 a month) | £242.01 to £967 (£1,048.01 to £4,189 a month) | Over £967 a week (£4,189 a month) |
| A | 0% | 12% | 2% |
| B | 0% | 5.85% | 2% |
| C | N/A | N/A | N/A |
| F | 0% | 12% | 2% |
| H | 0% | 12% | 2% |
| I | 0% | 5.85% | 2% |
| J | 0% | 2% | 2% |
| L | 0% | 2% | 2% |
| M | 0% | 12% | 2% |
| S | N/A | N/A | N/A |
| V | 0% | 12% | 2% |
| Z | 0% | 2% | 2% |
Employer National Insurance rates
This table shows how much employers pay towards employees’ National Insurance from 6 April 2023 to 5 April 2024.
| Letter | £123 to £175 (£533 to £758 a month) | £175.01 to £481 (£758.01 to £2,083 a month) | £481.01 to £967 (£2,083.01 to £4,189 a month) | Over £967 a week (£4,189 a month) |
| A | 0% | 13.8% | 13.8% | 13.8% |
| B | 0% | 13.8% | 13.8% | 13.8% |
| C | 0% | 13.8% | 13.8% | 13.8% |
| F | 0% | 0% | 13.8% | 13.8% |
| H | 0% | 0% | 0% | 13.8% |
| I | 0% | 0% | 13.8% | 13.8% |
| J | 0% | 13.8% | 13.8% | 13.8% |
| L | 0% | 0% | 13.8% | 13.8% |
| M | 0% | 0% | 0% | 13.8% |
| S | 0% | 0% | 13.8% | 13.8% |
| V | 0% | 0% | 0% | 13.8% |
| Z | 0% | 0% | 0% | 13.8% |
Glossary
NI Category Letters
A – All not covered by another category
B – Married woman and widows entitled to pay reduced NI
C – Employees over state pension age
F – Freeport standard
H – Apprentice Under 25
I – Freeport married woman’s reduced rate election (MWRRE)
J – Deferment
L – Freeport deferment
M – Under 21
S – Freeport over state pension age
V – Veterans standard
Z – Under 21 deferment