Get all your news in one place.
100’s of premium titles.
One app.
Start reading
The National (Scotland)
The National (Scotland)
National
Lois Mackenzie

How much will I get in my payslip after the National Insurance change?

How much will I get in my payslip after the National Insurance threshold change? (PA)

WORKERS are set for an increase in their take-home pay this week amid National Insurance changes coming into force.

As of Wednesday, July 6 2022, the threshold at which Brits will start contributing to National Insurance payments will rise from £9880 to £12,570.

It comes after the National Insurance price hike, announced by Boris Johnson last year, came into effect in April.

The Prime Minister announced a 1.25 percentage point increase in National Insurance last September to address the funding crisis in England's health and social care system.

Starting from Wednesday, July 6, payslips will start to look a little different, but how much extra will you get?

How much extra pay will I get after the National Insurance change?

A typical employee will save over £330 in the year from July, according to the UK Government.

(PA)

According to the Press Association, an individual on a £40,000 salary would pay £304.32 a month on National Insurance, prior to the 1.25 per cent hike.

Currently, they will pay £332.58 a month.

Following the change in the threshold on July 6, you would pay £302.87 a month.

According to Hargreaves Lansdown, someone earning £20,000 would have had a monthly NI bill of around £104 before April, which then rose to £112 and will drop to around £82 following the July changes.

Someone on £30,000 would have paid around £204 per month before April, then rising to £222 and they will now see this fall to around £192.

Someone on £50,000 will pay around £413 per month from July, up from around £404 before April, and someone earning £60,000 will pay around £443 from July, up from £423 before April, according to Hargreaves Lansdown.

The UK Government has said seven in 10 (70%) workers who pay National Insurance contributions (NICs) will pay less.

However, with the cost of living crisis worsening and inflation set to hit 11%, many households may not feel better off in practice, even with more money in their pay packet.

Sign up to read this article
Read news from 100’s of titles, curated specifically for you.
Already a member? Sign in here
Related Stories
Top stories on inkl right now
One subscription that gives you access to news from hundreds of sites
Already a member? Sign in here
Our Picks
Fourteen days free
Download the app
One app. One membership.
100+ trusted global sources.