National Insurance Contributions (NICs)

Ensure your state pension is topped up

A Guide to National Insurance Contributions from Abroad

The following information should help you to find out the amount you need to pay if you want to make voluntary contributions from overseas, and how to make the payment. It’s also important to note that you can only pay for gaps in your National Insurance record from the past 6 years in most cases. However, making up shortfalls can allow you to meet the requirements for a full State Pension.

Please note that to understand more about the benefits of National Insurance and making contributions from abroad, please refer to the guidance notes Nl38.

Why Should You Check Your NICs?

Your NICs are directly related to if and how much State Pension you receive. The number of qualifying years on your National Insurance record determines this. Qualifying years are simply the number of years you have paid NI. You should note that qualifying years do not need to be consecutive years.

By the time you reach pension age, you must have paid National Insurance Contributions for 10 years to receive any State Pension. The minimum qualifying years will mean you will receive 10/35ths of whatever the maximum State Pension amount is at the time (currently £203.85 per week - 2023). 

You must have paid National Insurance Contributions for 35 years to receive the maximum State Pension. The formula used to work out State Pension is as follows: 

Maximum weekly amount ÷ maximum qualifying years x number of actual qualifying years 

So, let’s say you have 20 qualifying years. To determine how much you would get, you would do 203.85 ÷ 35 x 20, which works out to £116.49 per week. Gaps in your National Insurance record can have a significant impact. Missing a single year of contributions could be the difference between receiving the full amount or a lesser amount.

What NI Should I Be Paying?

Individuals living and working overseas may, under the right conditions, (before going abroad, you paid 3 years of National Insurance since April 1975) qualify to pay Class 2 rather than Class 3 contributions.

Class 2’s are typically lower than Class 3’s (see below). If you're filling gaps of many years, this could save you thousands of pounds.

  • £3.45 a week for Class 2 (£179.40 PA)

  • £17.45 a week for Class 3 (£907.40 PA)

What Is The Scope for Expatriates?

The scope is limited for expats who want to pay voluntary NIC. Those who qualify are:

  1. Expats living and working overseas (Class 2)

    Providing they have lived and worked in the UK immediately before leaving AND they have lived in the UK for three years in a row OR have paid NIC for three years.

  2. Expats living overseas, but not working (Class 3)

    They have lived in the UK for three years in a row OR have paid NIC for three years.

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