Working for an agency

[RedHelenB]

Is it usual for the employers NI contributions to come out of the wage you earn as well as your own NI?

It doesn't come out of the wage you earn as such, it comes out of the amount the agency charges the company engaging you, along with other amounts including contributions to holiday/sick pay pools and the agency's fee. What is left after these deductions is the wage you earn (your gross pay) from which the only deductions are normally tax and employees national insurance.

Just looked at my pay slip in more detail & both my NI & employers NI have come oput of the wage?

Sounds like a mistake.

Agency payslips usually look like this:

Invoice amount £A

Less:

• Holiday pay accrual
• Sick pay accrual
• Employer's NI
• Agency fee
• Expenses
• Pension contribution
• Childcare vouchers
• etc.

Total deductions from invoice £B

Gross Pay £C = £A - £B

Less:

• Income tax £T
• Employee's NI £N

Net Pay £D = £C - £T - £N

If it is not like this ask the agency to explain.

It's an umbrella company doing the pay slips not the agency itself. There's no agency fee taken out but when I got told the amounts I was earning per day no mention was made of the employers NI being taken out. Also, I know the agency will charge the workplace more than my wage as my wage for an agency is less than if I were working in that place as a permanent employee.