NICs can entitle you to the following benefits:
- Contribution based Jobseeker's Allowance (Class 1 NICs only).
- Incapacity Benefit (if you can't work for long periods due to illness or injury).
- State Pension.
- Additional State Pension (Class 1 NICs only).
- Widowed Parents' Allowance.
- Bereavement Allowance.
- Bereavement Payment.
- Maternity Allowance.
National Insurance Rates
The following amounts apply for the 2009-2010 tax year if you are employed:
- If you earn above £95 a week (the 'earnings threshold') and up to £844 per week you pay 11 per cent of this amount as 'Class 1' NICs.
- You also pay one per cent of earnings above £844 a week as Class 1 NICs.
- You will pay a lower amount as an employee if you are a member of your employer's contracted out pension scheme.
More on National Insurance