Social Security Contributions and Benefits (Northern Ireland) Act 1992

1 Outline of contributory system. N.I.

(1) The funds required—

(a) for paying such benefits under this Act [F1 or any other Act or Northern Ireland legislation] as are payable out of the National Insurance Fund and not out of other public money; and

(b) for the making of payments under section 142 of the Administration Act towards the cost of the health service,

shall be provided by means of contributions payable to the [F2 Inland Revenue] by earners, employers and others, together with the additions under subsection (5) below [F3 and amounts payable under Article 4 of the Social Security (Northern Ireland) Order 1993].

(2) Contributions under this Part of this Act shall be of the following F4 ... classes—

(a) Class 1, earnings-related, payable under section 6 below, being—

(i) primary Class 1 contributions from employed earners; and

(ii) secondary Class 1 contributions from employers and other persons paying earnings;

(b) Class 1A, payable under section 10 below F5 ... by persons liable to pay secondary Class 1 contributions and certain other persons;

[F6 (bb) Class 1B, payable under section 10A below by persons who are accountable to the Inland Revenue in respect of income tax on [F7 general earnings] in accordance with a PAYE settlement agreement;]

(c) Class 2, flat-rate, payable F8 ... under section 11 below by self-employed earners;

(d) Class 3, payable under section 13 [F9 or 13A] below by earners and others voluntarily with a view to providing entitlement to benefit, or making up entitlement;

[F10 (da) Class 3A, payable by eligible people voluntarily under section 14A with a view to obtaining units of additional pension;] and

(e) Class 4, payable under section 15 below in respect of the profits or gains of a trade, profession or vocation, or under section 18 below in respect of equivalent earnings.

(3) The amounts and rates of contributions in this Part of this Act and the other figures in it which affect the liability of contributors shall—

(a) be subject to regulations under sections 19(4) and 116 to 119 below; and

(b) to the extent provided for by section 129 of the Administration Act be subject to alteration by orders made under that section,

F11 ...

(4) Schedule 1 to this Act—

(a) shall have effect with respect to the computation, collection and recovery of contributions of Classes 1, 1A, [F12 1B,] 2 [F13 , 3 and 3A], and otherwise with respect to contributions of those classes; and

(b) shall also, to the extent provided by regulations made under section 18 below, have effect with respect to the computation, collection and recovery of Class 4 contributions, and otherwise with respect to such contributions, F14 ...

(5) For each financial year there shall, by way of addition to contributions, be paid out of money hereafter appropriated for that purpose, in such manner and at such times as the Department of Finance and Personnel may determine, amounts the total of which for any such year is equal to the aggregate of all statutory sick pay [F15 , statutory maternity pay, [F16 statutory paternity pay, statutory adoption pay [F17 , statutory shared parental pay and statutory parental bereavement pay]]] recovered by employers and others in that year, as estimated by the Department.

(6) No person shall—

(a) be liable to pay Class 1, Class 1A [F18 , Class 1B] or Class 2 contributions unless he fulfils prescribed conditions as to residence or presence in Northern Ireland;

[F19 (aa) be treated under section 11(5B) as having actually paid Class 2 contributions unless he fulfils such conditions;]

(b) be entitled to pay Class 3 contributions unless he fulfils such conditions; or

(c) be entitled to pay Class 1, Class 1A [F18 , Class 1B] or Class 2 contributions other than those which he is liable to pay, except so far as he is permitted by regulations to pay them.

[F20 (7) Regulations under subsection (6) above shall be made by the Treasury.]

Textual Amendments

F1 Words in s. 1(1)(a) inserted (6.4.2016) by Pensions Act (Northern Ireland) 2015 (c. 5), s. 53(3), Sch. 12 para. 3

F2 Words in s. 1(1) substituted (24.3.1999 for specified purposes and 1.4.1999 otherwise) by S.I. 1999/671, arts. 1(2)(b), 3(1), Sch. 1 para. 5(2) (with savings and transitional provisions in Sch. 7); S.R. 1999/149, art. 2(c), Sch. 2 (subject to arts. 3-6)

F3 Words in s. 1(1) added (17.3.1993) by S.I. 1993/592 (N.I. 2), arts. 1(2), 4(9)

F4 Word in s. 1(2) omitted (12.10.2015) by virtue of Pensions Act 2014 (c. 19), s. 56(1), Sch. 15 para. 16(2)(a); S.I. 2015/1670, art. 2(b)

F5 Words in s. 1(2)(b) repealed (with effect in relation to tax year 2000-2001 and subsequent tax years) by 2000 c. 19, ss. 78(1)(8), 85, Sch. 9 Pt. VIII(2), note 1 (with s. 78(9))

F6 S. 1(2)(bb) inserted (9.9.1998 for the purpose of making regulations and 6.4.1999 otherwise) by S.I. 1998/1506 (N.I. 10), art. 78(1), Sch. 6 para. 38(1); S.R. 1998/312, art. 2(b), Sch. Pt. II

F7 Words in s. 1(2)(bb) substituted (with effect in accordance with s. 723(1)(a)(b) of the amending Act) by Income Tax (Earnings and Pensions) Act 2003 (c. 1), s. 723, Sch. 6 para. 191 (with Sch. 7)

F8 Word in s. 1(2)(c) omitted (with effect for the tax year 2015-16 and subsequent tax years) by virtue of National Insurance Contributions Act 2015 (c. 5), Sch. 1 paras. 11, 35

F9 Words in s. 1(2)(d) inserted (6.4.2009) by Pensions Act 2008 (c. 30), ss. 136(3), 149(4)

F10 S. 1(2)(da) inserted (12.10.2015) by Pensions Act 2014 (c. 19), s. 56(1), Sch. 15 para. 16(2)(b); S.I. 2015/1670, art. 2(b)

F11 Words in s. 1(3) omitted (6.4.2016) by virtue of Pensions Act (Northern Ireland) 2015 (c. 5), s. 53(3), Sch. 13 para. 48

F12 Words in s. 1(4)(a) inserted (9.9.1998 for the purpose of making regulations and 6.4.1999 otherwise) by S.I. 1998/1506 (N.I. 10), art. 78(1), Sch. 6 para. 38(2); S.R. 1998/312, art. 2(b), Sch. Pt. II

F13 Words in s. 1(4)(a) substituted (12.10.2015) by Pensions Act 2014 (c. 19), s. 56(1), Sch. 15 para. 16(3); S.I. 2015/1670, art. 2(b)

F14 Words in s. 1(4)(b) repealed (omitted 24.3.1999 for specified purposes only and wholly repealed 1.4.1999) by S.I. 1999/671, arts. 1(2)(b), 3(1), 24(3), Sch. 1 para. 5(3), Sch. 9 Pt. I (with savings and transitional provisions in Sch. 7); S.R. 1999/149, art. 2(c), Sch. 2 (subject to arts. 3-6)

F15 Words in s. 1(5) substituted (8.12.2002) by The Employment (Northern Ireland) Order 2002 (S.I. 2002/2836 (N.I. 2)), arts. 1(2), 7(3); S.R. 2002/356, art. 2(2), Sch. 1 Pt. II

F16 Words in s. 1(5) substituted (15.3.2015 for specified purposes, 5.4.2015 in so far as not already in force) by Work and Families Act (Northern Ireland) 2015 (c. 1), s. 23(1), Sch. 1 para. 2(2); S.R. 2015/86, arts. 3(2)(i), 4(2)(h), 5 (with art. 7(2))

F17 Words in s. 1(5) substituted (23.3.2022) by Parental Bereavement (Leave and Pay) Act (Northern Ireland) 2022 (c. 5), ss. 4, 5(5)(6), Sch. para. 3; S.R. 2022/136, arts. 2, 3

F18 Words in s. 1(6) inserted (9.9.1998 for the purpose of making regulations and 6.4.1999 otherwise) by S.I. 1998/1506 (N.I. 10), art. 78(1), Sch. 6 para. 38(3); S.R. 1998/312, art. 2(b), Sch. Pt. II

F19 S. 1(6)(aa) inserted (6.4.2024) by The Social Security (Class 2 National Insurance Contributions) (Consequential Amendments and Savings) Regulations 2024 (S.I. 2024/377), regs. 1(1), 5(2) (with reg. 1(4))

F20 S. 1(7) inserted (1.4.1999) by S.I. 1999/671, art. 4, Sch. 3 para. 2 (with savings and transitional provisions in Sch. 7); S.R. 1999/149, art. 2(c), Sch. 2 (subject to arts. 3-6)