How much will you save from the Employees National Insurance rate cut?

In the Autumn Statement the main rate of Class 1 Employee’s National Insurance was cut from 12% to 10%. What will this mean for you?

In his Autumn Statement 2023 the Chancellor announced a cut in the main rate of Class 1 Employee’s National Insurance from 12% to 10%.

The change takes effects from 6 January 2024 and as a result around 27 million employees will see an increase in their net pay paid in January.

The main rate of Employee’s NIC for monthly paid employees covers the monthly gross earnings from £1048 to £4189 (the Upper Earnings Limit)

For each £100 a person earns over £1048 per month they will receive £2 extra in their net pay from this month.

Here are some practical examples of what this will mean to your net pay (assuming other factors being unchanged)

This continues up to a maximum reduction at gross pay £4189 the reduction is £3141 x2% which results in £62.82 extra net. Employees who paid in excess of £4189 are subject to the Upper Earnings Limit and so will receive a capped amount of £62.82 extra net.

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