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What do I pay?

There is a five-tier contribution system, with contributions based on how much of your pay falls into each tier. Here are the tiers that apply from April 2010:

Whole time pay

Contribution rate (%)

On earnings up to and including £18,000

5.5%

On earnings above £18,000 and up to £22,000

7.25%

On earnings above £22,000 and up to £30,000

8.5%

On earnings above £30,000 and up to £40,000

9.5%

On earnings above £40,000

12%

The pay ranges are reviewed each April and may rise in line with the cost of living.

Part-time workers

If you work part-time hours your contribution rate is worked out on the whole-time pay rate for your job, although you will only pay contributions on the pay you actually earn.

Let's take a look at someone who works full-time at a pay rate of £22,000. They'll pay 5.5% on their pay up to £18,000, and 7.25% on the next £4,000. That gives an overall contribution rate of 5.8% - around £106 a month in contributions. If they were working half-time, they'd still pay the same contribution rate. That's because the whole-time rate for their job is still £22,000, but their contributions would be based on their part-time earnings, so instead they'd pay half - around £53 a month.

 

Link to Scottish Government Website