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newbie99 | 15:54 Sun 02nd Feb 2020 | Jobs & Education
8 Answers
My sister is working 16 hours at the minimum wage and she asked me to help to explain her state pension contributions.
The question is that according to the state pension statement, she need to make a voluntary national insurance of over two thousand pounds for the last six years.
Why is this? Should the employer pays for this?

Would be great if someone could explain why this happened?

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She hasn't earned enough in those years to pay sufficient National Insurance to make them qualifying years towards state pension entitlement.

There is a minimum threshold earnings amount for each year. If you earn below that you don't pay.

The voluntary contributions are just that - voluntary. But it's advisable to pay them if you don't already have, or expect to have the 35 [current requirement] qualifying years for a full state pension.

Rates for each year are listed here:

https://www.which.co.uk/money/tax/national-insurance/national-insurance-rates-ajg9u9p48f2f
And to answer your other question - both the employer and the employee pay NI contributions when earnings are over the threshold amount.
I think because to make enough contributions you have to earn a certain amount. https://www.gov.uk/voluntary-national-insurance-contributions. If your sister contacts the pensions office they can expalin it to her in detail.
Question Author
OK. Thanks to all be the replies, very useful and will let her know.
Even if she is an adult her wage of around £130 a week is below th threshold for paying NI. If she earns that each week she won't be paying any NI. Someone said the employer will be paying but I think the same threshold £166 pw ) applies so the employer won't be paying either.
Keeping the hours down is a good way for employers and employees to save on NI- but for employees it causes this problem. The irony is that if she was not working and claimed unemployment benefit/JSA/UC her NI contributions would be credited
Sorry- didn't see the other answers so haven't really added anything
// She hasn't earned enough in those years to pay sufficient National Insurance//
she must have known this in order to ask you

and it boils down to: as ever:
if you doan wanna do it: dont do it

[asking foo why hasnt someone else done it den?
is not the way forward - but hell ABers find it fun to ask]
As usual, Mr Pedant's answer is no help even if you can understand it.

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