Contracted In and Contracted Out


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Contracted In Rates

Contracted In means that you are contributing a National Insurance Stamp towards a state pension for yourself.

The contracted in rates are as follows:

2008-2009
11% of earnings between £90 and £770 per week (4.85% for married women)
1% on earnings above £770 per week (5.85% for married women)

2009-2010
11% of earnings between £95 and £844 per week (4.85% for married women)
1% on earnings above £844 per week(5.85% for married women)

Contracted Out Rates

Contracted Out means that you have made your own pension arrangements and therefore do not wish to pay towards a state pension. Contracted out rates are therefore cheaper than contracted in rates. The current rebate for contracting out is 1.6%.


The contracted out rates are as follows:

2008/2009
9.4% of earnings between £90 and £770 per week (3.25% for married women)
1% on earnings above £770 per week (4.25% for married women)

2009/2010
9.4% of earnings between £95 and £844 per week (3.25% for married women)
1% on earnings above £844 per week (4.25% for married women)

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Updated on 20th April, 2009

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