HMRC have abolished employers National Insurance contributions for employees aged between 16 and 21. From 6th April 2015 employers will no longer make a contribution of 13.8% for employees earning over the National Insurance threshold (£153 per week for 2015-16). Employees, however, will still have the employee's contribution deducted from their gross pay. If employees earn above the upper earnings limit of £815 per week employers National Insurance contributions will be due at 13.8% on the amount above the upper earnings limit.
HMRC advise that the employee's entitlement to social security benefit and the state pension won't be affected.
The Government is hoping that this, along with the £2,000 employment allowance which is set against Employers NIC, will encourage employers to recruit staff both above and below the age of 21.