What has changed with employers’ National Insurance – and how will it impact you?

Will you feel the effects of the National Insurance hike, as businesses warn of redundancies, smaller pay rises and higher inflation?

Chancellor Rachel Reeves outside 11 Downing Street, holding the red box ahead of the 2024 Autumn Budget
(Image credit: Photo by JUSTIN TALLIS/AFP via Getty Images)

Employers are now paying higher National Insurance contributions after changes to the tax kicked in on 6 April, the start of the new tax year. Chancellor Rachel Reeves first announced the policy in her 2024 Autumn Budget.

The changes are two-fold. Firstly, the rate of employer contributions has increased from 13.8% to 15%. Secondly, the threshold for contributions has dropped, meaning businesses now begin paying the tax once a salary hits £5,000, down from £9,100 previously.

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Your weekly earnings

Class 1 National Insurance rate

How much you will pay if you earn £1,000 a week

£0-£242

0%

£0 on the first £242

£242.01 to £967

8%

£58 on the next £725

Over £967

2%

66p on the next £33

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Katie Williams
Staff Writer

Katie has a background in investment writing and is interested in everything to do with personal finance, politics, and investing. She enjoys translating complex topics into easy-to-understand stories to help people make the most of their money.

Katie believes investing shouldn’t be complicated, and that demystifying it can help normal people improve their lives.

Before joining the MoneyWeek team, Katie worked as an investment writer at Invesco, a global asset management firm. She joined the company as a graduate in 2019. While there, she wrote about the global economy, bond markets, alternative investments and UK equities.

Katie loves writing and studied English at the University of Cambridge. Outside of work, she enjoys going to the theatre, reading novels, travelling and trying new restaurants with friends.