Reduction in the national insurance rate 

This month, millions of workers will take home more pay due to a reduction in the national insurance rate.

As announced by the chancellor, Jeremy Hunt, in November 2023, the main National Insurance rate for employees was reduced from 12% to 10% on 6 January 2024.

As an example:

On a salary of £30,000 an employee’s NIC per month was £174.30 at the original 12%, however from 6th January 2024 the new amount of £145.25 will be payable, saving £29.05 per month or £348.60 per year.

The self-employed will receive their reductions from April 2024 and we’ll be sharing more detail on this nearer the time. 

In the meantime, you can read the full details on the Government website:

https://www.gov.uk/government/publications/changes-to-national-insurance-contributions-from-6-january-2024/a-reduction-in-the-main-rates-of-primary-class-1-and-class-4-national-insurance-contributions-and-the-removal-of-the-requirement-to-pay-class-2-nation