Changes to National Insurance from January 6th 2024

Following the announcement in the Autumn Statement in November last year, the rate of National Insurance (NI) that Employees pay was reduced from 12% to 10% on January 6^th 2024.

This means that employees will pay less National Insurance:

Monthly paid Employees pay 10% National Insurance on pay over £1,048 per month.

Weekly paid Employees pay 10% National Insurance on pay over £242 per week.

Fortnightly paid Employees pay 10% National Insurance on pay over £483 per fortnight.

The 10% rate applies to pay up to the Upper Earnings Limit of:

£4,189 per month / £967 per fortnight / £1,933 per fortnight.

For pay above these thresholds, NI is calculated at 2%.

 

There is no change to the rate that Employers make National Insurance contributions which remains at 13.8% on pay above £758 per week / £175 per week / £350 per fortnight for qualifying Employees.

 

For further information, please visit:

https://www.gov.uk/guidance/rates-and-thresholds-for-employers-2023-to-2024