The prospect of living and working in the United Kingdom still fills many people with optimism. It is worth knowing in advance, however, what formal requirements have to be met. One of them is holding a National Insurance Number (NIN). This is a social insurance number. Each one is unique and consists of two letters at the start, a sequence of six digits, and one letter at the very end. Without this number, you cannot get a job or qualify for benefits.

Summary & key takeaways

  • The NIN is a unique National Insurance number you need to work and claim benefits in the UK.
  • You can get a NIN from the age of 16; newcomers must prove their identity at an appointment.
  • You receive one number for life, and HMRC records your earnings and contributions against it.
  • Your contributions determine your pension, maternity allowance and jobseeker's allowance, among others.
  • NI contributions fall into four classes, depending on how you work.

Who can get a NIN?

To get a NIN, you must be at least 16 years old. The number is then issued automatically to people born in the UK or those who arrived in the United Kingdom at a young age. Everyone else has to attend an appointment at a National Insurance Office, during which they will have to confirm their identity and provide evidence that they are working or intend to start working in the UK.

Why is paying NIN contributions necessary?

The NIN is the UK equivalent of Poland’s ZUS social insurance system, so paying contributions on it is mandatory. Because everyone has a different number, HMRC can keep a record of all our earnings and social contributions. The number never changes - we receive one for life, which means HMRC has accurate information about us. How much has been collected in contributions on our account determines how strong our entitlement to benefits will be, and how large a pension we will be due.

Which benefits depend on NIN contributions?

NIN contributions determine:

  • the State Pension

  • unemployment benefit (contribution-based Jobseeker’s Allowance)

  • Bereavement Allowance

  • support for people on low earnings (contribution-based Employment and Support Allowance)

  • the pension top-up (Second State Pension)

  • maternity pay (Maternity Allowance)

  • benefit for those unable to work due to their health (Incapacity Benefit)

Classes of NIN contributions

NIN contributions can be divided into four classes.

  • Class 1 National Insurance Contributions (NIC) - paid by people in employment; charged at 12% of income from weekly or monthly earnings.

  • Class 2 NIC - paid by the self-employed, £2.65 a week. These do not entitle us to the Second State Pension or other benefits, apart from Maternity Allowance and unemployment benefit.

  • Class 3 NIC - paid by people who have not paid the amount of contributions required by HMRC - they pay the missing amount.

  • Class 4 NIC - also paid by people running their own business (self-employed).

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