National Insurance contributions

National Insurance Contributions (NICs) are payments made by employees and employers in the UK to fund social security benefits. These contributions help provide financial support for services such as the National Health Service (NHS), state pensions, unemployment benefits, and maternity leave. When you earn a salary, a portion is automatically deducted as National Insurance, which is calculated based on your earnings. Higher earners pay more, while low earners might not have to contribute. Essentially, NICs help ensure that everyone has some level of support when needed, contributing to the country's welfare system.