The National Insurance rate will rise in April, the UK Government has confirmed.
This means earners will pay 1.25p more to the pound for National Insurance come April 2022.
This comes at a time when energy bills are expected to hike up by 51 percent and supermarkets have already warned that inflation could push up the price of items further.
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As Hull Live reports, the Prime Minister Boris Johnson and Chancellor Rishi Sunak say that the NI rise will help tackle Covid induced NHS backlog and reform social care.
But the rise in National Insurance has been criticised as thousands of households will be struggling to pay bills at the same.
Additionally, it has been pointed out that those earning high salaries will pay proportionally less national insurance than those on middle incomes when the rate rises in April.
Research by Income Tax Calculator UK shows that people earning £100,000 will pay seven per cent of their overall salary to NI - the same as those on £20,000.
While the National Insurance spike will take nine percent of pay off people earning £30,000 a year, those on £50,000 will devote 10 percent of their earnings to the tax.
However, those on a more affluent salary of £100,000 will only give away seven percent of their wages.
The Income Tax Calculator UK explains that those earning between £30,000 and £50,000 will be hardest hit by the 1.25 per cent NI hike, with the increase meaning that they will pay nine percent and ten percent of their salary towards NI respectively
Those least affected by the National Insurance 1.25 percent rise will earn £100,000 a year in the UK.
To discover what percentage of each worker's salary would to towards National Insurance, Income Tax Calculator UK analysed how much National Insurance (taking into account the 1.25 percent increase in April) people earning between £20,000 to £100,000 a year would pay this year.
How much you'll pay in NI from April
£20,000 an increase of £130 to overall NI contribution of £1,381 which is 7 per cent of income on NI.
£30,000 an increase of £225 to overall contribution of £2,706 with 9 per cent of income on NI.
£50,000 an increase of £505 to overall contribution of £5,086 with 10 per cent of income on NI.
£80,000 is an increase of £880 to £6,369 overall with eight per cent of income on NI.
£1000,000 is an increase of £1,130 to overall contribution of £7,008 which is 7 per cent of income on NI.
A spokesperson for Income Tax Calculator UK said: “The increase in National Insurance will have a huge effect on workers’ earnings in 2022, especially given soaring energy bills and the fact that inflation is at its highest point in 30 years.
"This data gives us a compelling insight into the fact that lower and average earners will be significantly more squeezed by the National Insurance hike than those at the very top.
"People earning some of the highest salaries in the country, for example, workers on £100,000 a year are set to pay the same percentage of their salary to NI as a person on £20,000 in 2022, despite earning five times as much, while those earning the average wage of £30,000 will see as much as 9 percent of their salary swallowed by NI."
