Employee National Insurance Contribution (NIC) changes come into effect from 6th January 2024…
In the recent Autumn Statement, the Chancellor announced a reduction in the Employee National Insurance rate. We assume that this measure is an attempt to assist with the ever increasing cost of living crisis.
The measure reduces the main rate of Employee Class 1 NIC’s by 2%, from 12% to 10%.
For Employers who quote a gross pay: the change in rate will reduce the amount of NI an Employee pays, therefore increasing their take home pay.
For Employers who quote a net pay*: the change in rate will reduce the amount of Employee’s NI that is payable, therefore reducing the liability that the Employer pays over to HMRC.
*For Employers who quote a net pay, if an employee pays workplace pension contributions, their take home pay will also be affected. Please always refer to the payslip for the correct net figure to pay.
The change in Employees National Insurance rates will come into affect from 6th January 2024.
