NIM10068 - Aggregation of earnings: calculation and recording: NICs due at main rate: different earnings periods
All examples on this page use the 2025听to 2026听rates and earnings bands. National Insurance contributions (NICs) are worked out using the exact percentage method.
Aggregated NICs are worked out on the total earnings using the shortest earnings period.
Employee鈥檚 NICs are worked out at:
- the main percentage rate on any earnings above the Primary Threshold (PT) up to and including the Upper Earnings Limit (UEL)
- the additional percentage on earnings which exceed the UEL
Employer鈥檚 contributions are worked out at the main secondary percentage rate on earnings which exceed the Secondary Threshold (ST).
Example
An employee听earns 拢2,500 per month from one job, and 拢400 per week from another. The earnings period is weekly as this is the shortest earnings period.
In 12 of the weeks, he receives both a weekly pay and a monthly pay (拢2,900 assessed on a weekly earnings period) and in the other 40 weeks he receives a weekly pay only (拢400 assessed on a weekly earnings period).
In week 1, he receives 拢400 weekly pay.
| NICs type | NICs due | Table letter |
|---|---|---|
| Employee's NICs | 拢12.64 | A |
| Employer's NICs | 拢45.60 | 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 LEL and the UEL. The figures will be recorded under contribution Table letter A. The entries on RTI for month 1 of 2025 to 2026 will be as follows.
Week 1
| Data item | Description | 听 |
|---|---|---|
| 79 | NI category | A |
| 79A | Gross earnings for NICs year to date | 拢400 |
| 79B | Gross earnings for NICs pay period | 拢400 |
| 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158 |
| 86A | Employer NICs year to date | 拢45.60 |
| 86Aa | Employer NICs this pay period | 拢45.60 |
| 86B | Employee NICs year to date | 拢12.64 |
| 86Ba | Employee NICs this period | 拢12.64 |
| 49 | Aggregated earnings indicator | Yes |
In week 5, he receives his 拢400 weekly pay and his 拢2,500 monthly pay.
| NICs type | NICs due | Table letter |
|---|---|---|
| Employee's NICs | 拢96.66 | A |
| Employer's NICs | 拢420.60 | A |
听
Recording the NICs due on Real Time Information
Payroll software only records category letters where NICs is paid on earnings between the LEL and the UEL. The figures will be recorded under contribution Table letter A. The entries on RTI for week 5 of 2025听to 2026听will be as follows (he has already received 4 weekly payments of 拢400).
| Data item | Description | 听 |
|---|---|---|
| 79 | NI category | A |
| 79A | Gross earnings for NICs year to date | 拢4,500 |
| 79B | Gross earnings for NICs pay period | 拢2,900 |
| 82 | Earnings at the LEL year to date | 拢625 |
| 82A | Earnings at LEL to PT year to date | 拢585 |
| 169 | Earnings PT to UEL year to date | 拢1,357 |
| 86A | Employer NICs year to date | 拢603 |
| 86Aa | Employer NICs this pay period | 拢420.60 |
| 86B | Employee NICs year to date | 拢147.22 |
| 86Ba | Employee NICs this period | 拢96.66 |
| 49 | Aggregated earnings indicator | Yes |