Students: By paying NICs what benefits am I building up entitlement to

You pay different classes of National Insurance contributions (NICs) depending on whether you have a job or work for yourself.

Employed
If you are employed you will probably pay Class 1 contributions. These count towards the following social security benefits:

• Jobseeker's Allowance
  
• Incapacity Benefit
  
• State Pension
  
• Bereavement benefits.

Self-employed
If you work for yourself you will probably pay Class 2 contributions, which count towards:

• Incapacity Benefit
  
• State Pension
  
• Bereavement benefits
  
• Maternity benefits.

Class 2 contributions do not count towards contribution-based Jobseeker's Allowance.

You may also pay Class 4 contributions on your business profits. Class 4 contributions do not count towards any social security benefits.

Voluntary payments
Class 3 NICs are voluntary and you can pay them if you want to improve your entitlement to:

• State Pension
  
• Bereavement benefits.

Look at the HM Revenue & Customs pages for information about NICs rates and allowances.