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Regulation 21(3) of the Social Security Contributions Regulations 2001 (SI 2001 No 1004)

NIM01251 explains the calculation of the Class 1 and 2 annual maximum for employees who have more than one employment.

»Ê¹ÚÌåÓýapp calculation provides an annual maximum for all earners who have more than one employment but it does not take account of those employees who, because they hold a valid reduced rate election, will pay main primary contributions at a reduced main rate.

To ensure that these earners are catered for, regulation 21(3) provides that for the purposes of determining an earner’s liability under the maximum calculation, a person who pays an amount of primary Class 1 NICs at a rate of less than the main primary rate because they hold a valid reduced rate election shall be treated as having paid contributions at the main primary rate, which for tax year 2024 to 2025 onwards is 8%.

For the 2022 to 2023 tax year there were temporary changes made to the rates of NICs, and rate of 12.73% applies for the purpose of the annual maximum calculation, see NIM01600 for more information.

For the 2023 to 2024 tax year there was an in-year change to the rate of primary Class 1 NICs and a rate of 11.5% applies for the purpose the annual maximum calculation, see NIM01625 for more information.