With the first payday of 2024 coming up for many, members need to be aware that Employees’ National Insurance Contribution (Class 1) rates have decreased from 12% to 10%.
The change was announced in the Autumn Statement last year, with payroll processors needing to take action this month. The measure to reduce the main rate of employee National Insurance (NI) contributions came into effect on 6 January 2024.
Changes initially impact employed individuals with earnings over the Class 1 Primary Threshold of £12,570. From 6 April 2024, the reduction will also impact self-employed people with profits above £12,570 and who are liable to pay Class 2 and Class 4 NI contributions.
Full details can be found on gov.uk.
