NIM30026 | Special Cases: Married Women: Background: Position from 6 April 1975: The law

Regulations 91 and 100 of the Social Security (Contributions) Regulations 1975

Following the re-construction of the National Insurance (RNI) scheme on 6 April 1975. Class 1 contributions became earnings related and the record keeping procedures of the Department became fully computerised. Contributions were deducted by the employer under PAYE arrangements.

Class 2 contributions remained at a flat-rate.

Class 3 contributions also remained at a flat-rate but became voluntary.

Where a woman had an election not to pay NICs she was permitted to retain the election under regulations 91 and 100 of the Social Security (Contributions) Regulations 1975. This meant that the the election not to pay was treated as an election to pay reduced rate contributions. Such contributions were payable at 2% of the married woman’s gross earnings whereas full rate contributions were payable at 5.5%. The percentage rates were increased in later years.

The two most common categories of reduced rate contributions were category B and category E. Reduced rate contributions do not count for any benefits.