What is national insurance?

National insurance is scheme in which employees make contributions from earnings (separate from and additional to income tax) to a national fund from which benefits are provided in certain events, such as, unemployment, sickness or other incapacity, maternity, and retirement.

The payment of national insurance benefits from the national insurance fund depends on the contributions an employee has paid into the scheme. Each of these benefits has its own different 'qualifying conditions', which must be satisfied before payment can be made.