NI alert: What does the National Insurance rise mean for the average employee?

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While National Insurance has now hit 13.25 percent for millions of taxpayers this year lower earners will be exempt from paying NI.

The new rates will apply to people earning between £184 and £967 a week but not everyone will end up paying the same.

Last month Rishi Sunak increased the threshold that National Insurance would have to be paid in a bid to help people through the cost of living crisis.

From July, people will be able to earn £12,570 a year without paying any income tax or National Insurance.

READ MORE: Pension warning as pensioners could end up being £12k worse off

He continued: “In this respect, for instance, a worker with a £20,000 annual salary will save £178 on their National Insurance between April 2022 and April 2023.

“If an employee earns £30,000 per year, they will pay £53 less than they did the last year.”

At the other end of the scale, people who earn more than £34,000 per year will end up paying more NI than they used to.

Somebody on a £50,000 yearly wage will pay an extra £197, whereas those on a £100,000 annual pay will see their National Insurance increase by £822.

What does the National Insurance rise mean for the average employee?

A worker on £20,000 will save £178 on their National Insurance between April 2022 and April 2023.

If an employee earns £30,000 per year, they will pay £53 less than they did the last year.

Somebody on a £50,000 yearly wage will pay an extra £197, whereas those on a £100,000 annual pay will see their National Insurance increase by £822.



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