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Investments glossary

National Insurance Contributions (NIC)

National Insurance Contributions are payments made by employees and employers into the United Kingdom’s National Insurance (NI). National Insurance contributions initially funded programs for the ill and unemployed, and later on eventually paid for state pensions, too. Contributions fall into categories that can either count toward an individual’s eligibility for benefits or are paid without counting towards any type of entitlement depending on the category it falls under.

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