what is national insurance

National Insurance is a fundamental component of the welfare state in the United Kingdom. It is a form of social security, and payment of National Insurance contributions establishes entitlement to certain state benefits for workers and their families. National Insurance is a tax on earnings and self- employed profits paid by employees, employers, and the self-employed. The amount of National Insurance you pay depends on your employment status, how much you earn, and the type of work you do. There are different types of National Insurance classes, and the rates vary based on your income. The system has its roots in the National Insurance Act 1911 and has been subjected to numerous amendments over the years