National Insurance payments are set to increase tomorrow - Wednesday 6 April - the first of two NI rises coming to UK paycheques this year.
National Insurance is a tax on earnings, paid by both employed and self-employed workers. It allows workers to qualify for certain benefits and the state pension.
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Payments will go up by 1.25 percentage points meaning they will rise from 12 percent to 13.25 percent and many Britons are expected to feel the financial squeeze of the increase.
This increase was reportedly introduced by the UK Government to support social care and the NHS.
As well as this, the National Insurance threshold will increase from £9,568 a year to £9,880.
Under plans announced by the government, this will rise again - from July 6 the threshold will be increased to £12,570.
Those earning £20,000 a year will pay an extra £89 and higher earners on £50,000 per year would pay an extra £464.
Salary and new National Insurance Contribution
- £20,000 - will pay an extra £130 a year (£10.80 per month)
- £30,000 - will pay an extra £255 a year (£21.25 per month)
- £50,000 - will pay an extra £505 a year (£45.80 per month)
- £80,000 - will pay an extra £880 a year (£73.33 per month)
- £100,000 - will pay an extra £1,130 a year (£94.16 per month)
