<Ul> <Li> </Li> <Li> </Li> <Li> </Li> </Ul> <P> National Insurance (NI) is a tax system in the United Kingdom paid by workers and employers for funding state benefits . Initially, it was a contributory form of insurance against illness and unemployment, and eventually provided retirement pensions and other benefits . Citizens pay National Insurance contributions to become eligible for State Pension and other benefits . Anyone 16 years old and above are mandated to pay National Insurance provided the employee earns more than £ 162 a week or the individual is self - employed and makes a profit of £ 6,205 or more annually . It is necessary to obtain a National Insurance number before starting to pay contributions . </P> <P> NI was first introduced by the National Insurance Act 1911 and expanded by the Labour government in 1948 . The system was subjected to numerous amendments in succeeding years . </P> <P> Employees and employers pay for National Insurance contributions on certain benefits provided to employees . Self - employed persons contribute partly through a fixed weekly or monthly payment, and partly on a percentage of net profits above a certain threshold . Individuals may also make voluntary contributions to fill a gap in their contributions record and thus protect their entitlement to benefits . Contributions from employees are collected by HM Revenue and Customs (HMRC) through the PAYE system, along with Income Tax, repayments of Student Loans and any Apprenticeship Levy which the employer is liable to pay . </P>

When was national insurance introduced in the uk