Earn More National Insurance Reduction Calculator
Published / Last Updated on 05/07/2022
As announced by former Chancellor (he resigned today), Rishi Sunak, National Insurance Contribution (NIC rates) will be reduced on 6 July to allow people to keep more money in their pockets to help with cost-of-living inflation increases.
The average saving will be £175 and goes some way to reduce the impact of offsetting the 1.5% increase via the social care levy, which started on 6 April.
The income threshold where people start paying National Insurance will be £12,570. This is the Employees Earnings Primary Threshold (PT) and increases from £192 per week to £242 per week. The Treasury estimates:
- Average saving £175 pa.
- Worth £330 pa for 7 out of 10 workers.
- All workers earning less than £36,300 will save money. This is a greater saving than just offsetting the Social Care Levy, this is an even greater cut.
- All workers earning up to £51,000 will see that these changes totally offset the effect of the Social Care Levy.
- Employers NIC are unaffected although many smaller employers benefit from the Employment Allowance i.e., pay little or no national insurance.
New NIC Saved Calculator
The Treasury has launched an online tool for you to check how much you will save.
Simply type in your yearly salary to calculate your NIC savings.
