UK National Insurance contribution changes What does the rate reduction mean for you?
Introduction Finally, some good financial news. 2023, we all felt it. Everything from weekly shop to filling up your car skyrocketed. Now for a slight relief. From the 6th of January, employees will be paying national insurance at the rate of 10%. That is a 2% deduction.
What does this mean for you?
A higher take home pay! According to the Treasury, the average employee will save around £450 a year. To show how it works, here are some figures for an employee earning £40 gross per annum.
Before 6 January 2024. The total amount deducted per year would have been £3,634 (£2,461 take home per month)
From 6 January. The total amount deducted will be £2,743 (£2,535 take home per month).
Why is it important to pay National Insurance?
It qualifies you for state pension and maternity allowance. You need 30 qualifying years to be eligible. Don’t worry if you have gaps. You make voluntary contributions. Click here to check your NI record
