Cambridge Encyclopedia » Cambridge Encyclopedia Vol. 53

national insurance - Introduction, Contribution classes, The National Insurance number, NIRS

scheme contributions

A system whereby the state insures all its residents against illness, disability, unemployment, and old age. In the UK, for example, the National Insurance Scheme is funded by compulsory contributions on all workers above a low exemption limit and their employers. The National Insurance Fund then makes payments to individuals who are ill, unemployed, or retired. The contributions cover only a small part of the total cost of the scheme, the remainder coming from central government revenues.

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