What Is The HMRC Payment NIERS On My Payslip?

If you have noticed the mention of HMRC Payment NIERS on your payslip and are keen to learn about its purpose, how and why the amount is deducted from your income, you will find detailed guidance in the following blog post.

What Is The HMRC Payment NIERS On My Payslip?

The HMRC payment NIERS on your payslip stands for Employer’s National Insurance Contribution. It is a standard deduction made from the incomes of employees of an umbrella company, a limited company or those working under the PAYE system a recruitment agency.

If you are employed in the UK, you would be aware that all employers are required to make national insurance contributions to the HMRC on behalf of their employees. NIERS is a Class 1 secondary contribution that is actually a deduction from your income that is paid to the HMRC by your employer.

The reason why NIERS appear on your payslip is to inform you (a) that the required contribution that is mandatory upon you has been made and (b) the amount with which the contribution has been made. This is the case when someone is being paid as a contractor under the PAYE system of an agency or an umbrella company and is not on the payroll of the company.

In the previous tax term of 2021-2022, the rate for NIERS stood at 13.8% on weekly earnings exceeding £170.

How Is NIERS Calculated On My Income?

To explain how NIERS can be calculated on your income, we will take a hypothetical situation into consideration. Let’s assume that a contractor has been hired through an agency for a certain company with a daily pay of £500.

If the contractor works for 5 days a week, their weekly earnings will be £500 x 5 = £2,500. However, this is the gross amount of his earnings subject to a national insurance contribution of £170 each week.

Based on this, the amount for NIERS can be calculated as follows:

Weekly gross earnings minus NIERS deduction = Pay subject to NIERS

£2,500 – £170 = £2,330

Will I Gain Any Benefit When I Pay NIERS?

While your NIERS payment is a mandatory deduction whether you are working at a single job or at two different jobs, you will benefit in the future from the payment you make today. This is most apt in cases when your entitlement towards contributory benefits increases due to your National Insurance contributions.

This means that your eligibility and the amount you claim in the case of the following benefits will increase when your National Insurance contributions are higher:

  • Unemployment benefits, such as Jobseeker’s Allowance (JSA) and  Employment and Support Allowance (ESA)
  • Bereavement benefits (Bereavement Allowance, Bereavement Payment and Widowed Parent’s Allowance)
  • Maternity Allowance
  • Incapacity Benefit


You would have been able to conclude from the above discussion that the HMRC payment for NIERS that appears on your payslip is a mandatory deduction from your earnings and added to your National Insurance contributions if you are a contractor and your income is sourced through an agency and not via the PAYE system. 


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