National Insurance Contributions - NIC


DEFINITION of 'National Insurance Contributions - NIC'

Payments made by employees and employers into the United Kingdom's National Insurance (NI). National insurance contributions initially funded programs for the ill and unemployed, and later on eventually paid for state pensions too. Contributions fall into categories which can either count toward an individual's eligibility for benefits or are paid without counting towards any type of entitlement depending on the category it falls under.

INVESTOPEDIA EXPLAINS 'National Insurance Contributions - NIC'

National insurance contributions are made through payroll and income taxes. Over the years, contributions expanded to cover other government-provided benefits. Limits on contributions were removed from upper income levels, making this a more redistributive program.

  1. Jobless Claims

    The number of people who are filing or have filed to receive ...
  2. Unemployment Insurance

    A source of income for workers who have lost their jobs through ...
  3. State Income Tax

    Tax levied on income at the state level. State income taxes have ...
  4. Income Tax

  5. Payroll Tax

  6. Commercial Package Policy (CPP)

    An insurance policy that combines coverage for multiple perils, ...
  1. No results found.
Related Articles
  1. Budgeting

    Laid Off? You Can Still Retire

  2. Active Trading

    Leading Economic Indicators Predict Market Trends

  3. Professionals

    Jobless Recovery: The New Normal Since 1990

    Just because the economy rebounds from a recession does not mean the unemployment rate will follow.
  4. Professionals

    Jobless Growth: Are You Prepared?

    Economic growth doesn't always mean employment growth. Learn about how the jobless growth economy affects workers and investors.
  5. Professionals

    Why Auto-Enrollment Will Save Your Retirement

    Savers need all the help they can get, even if it amounts to an offer they can't refuse. That's why the biggest improvement to 401(k)s is auto-enrollment.
  6. Professionals

    Retirement Planning Essentials for Your Clients

    You may have heard these retirement planning tips before, but has your client actually put them into action yet?
  7. Professionals

    Which Robo-Advisor is Right for You?

    Which robo-advisor is right for you? There are many factors to consider, including breadth of services, ease of use and cost.
  8. Investing Basics

    This Investment Strategy Could Be Your key To Success

  9. Taxes

    Before You Visit Your Tax Preparer: Do This

  10. Entrepreneurship

    10 Tax Benefits For The Self-Employed

    Running your own business has both personal and financial perks.

You May Also Like

Hot Definitions
  1. Sunk Cost

  2. Technical Skills

  3. Prepaid Expense

  4. Gordon Growth Model

  5. Cost Accounting

  6. Law Of Supply

Trading Center