Government announces increase in National Insurance Contributions

September 22, 2021

The UK Government has announced a 1.25% increase in National Insurance Contributions (NICs), effective from April 2022. Employers, employees and self-employed will have to pay increased NICs for a year.

From April 2023, a new ringfenced Health and Social Care Levy of 1.25% will be introduced. These changes will affect those who pay Class 1 (employee and employer), Class 1A and 1B and Class 4 (self-employed) NICs. When this increase comes into effect, NICs will revert to current rates.

The increases will help fund plans to improve the UK’s NHS and Social Care by £12 billion a year.

From 2023-2024 Levy Contributions will be required to appear on payslips. Where possible a message should be included on payslips for the next tax year (2022-23).

SNIPEF’s Industrial Relations team will keep you informed nearer the time but more information visit GOV.UK website and Our Plan for Health and Social Care.

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