# What is National Insurance?

Checked 2026-10-01. By the RewardsPilot team.

National Insurance is a contribution paid on earnings in the UK that funds state benefits and the State Pension. For an employee it has two parts: Class 1 contributions deducted from their pay, and employer's National Insurance paid by the employer on top. Both are worked out in payroll and paid to HMRC with PAYE.

## What to know

- The amounts depend on the employee's National Insurance category letter and how much of their earnings falls in each band. Most employees are category A.
- Employer's National Insurance is a cost to the business on top of the salary, not a deduction from it.
- Employers deduct and pay National Insurance through payroll software and report it to HMRC with each payday.
- Class 1A National Insurance is due on benefits given to employees, such as company cars, and is paid separately.

Sources: GOV.UK, "National Insurance rates and categories" (https://www.gov.uk/national-insurance-rates-letters). Checked 2026-10-01.

## National Insurance and RewardsPilot

National Insurance is part of the PAYE bill. Paid through RewardsPilot, the bill earns 4 RewardsPilot points per £1 of net spend.

## Related

- [What is PAYE?](https://www.rewardspilot.co.uk/learn/paye)
- [How to pay your PAYE bill](https://www.rewardspilot.co.uk/pay/paye)

### Does National Insurance earn RewardsPilot points?

National Insurance is part of the PAYE bill. Paid through RewardsPilot, the bill earns 4 RewardsPilot points per £1 of net spend.

Official facts are quoted from GOV.UK and can change. This is general information, not tax or legal advice.

Apply: https://www.rewardspilot.co.uk/apply · Request a call: https://www.rewardspilot.co.uk/request-a-call

---

Canonical URL: https://www.rewardspilot.co.uk/learn/national-insurance
Markdown version: https://www.rewardspilot.co.uk/learn/national-insurance.md
Last reviewed: 2026-10-01
Contact: info@rewardspilot.co.uk · 0161 850 2526
YTY LTD trading as RewardsPilot, company number 11880920. Payroll services provided under company number SC576748.