Hundreds of thousands of workers to get a PAY RISE next month due to National Insurance threshold changes
HUNDREDS of workers will get a pay rise next month due to a National Insurance threshold rise.
It means the average worker will get £30 a month or £360 extra.
The amount you’ll get will vary based on how much you earn.
In March, the Chancellor announced that the threshold that workers pay National Insurance will rise from £9.500 a year to £12,500 from July.
This means workers saw their pay packets drop in April - but will see payments rise again after July’s threshold changes kick in.
However, it comes after a National Insurance hike on April 6, which saw millions paying extra.
Before April 6, most workers - who earn between £9,568 and £50,270 a year - paid 12% National Insurance.
What is National Insurance?
National insurance is a tax paid by workers above a certain level of earnings.
The contributions help fund benefits like the State Pension, sick pay and unemployment benefits.
All UK nationals receive an NI number (and NI card) automatically before they turn 16.
Your NI number helps the government track your earnings and charge the right amount of tax.
You currently pay National Insurance if you’re 16 or over and either:
- an employee earning above £184 a week
- self-employed and making a profit of £6,515 or more a year
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The tax is deducted from your wages each month and you can see how much you pay on your payslip.
Once you reach state pension age, you don't need to pay National Insurance at all.National Insurance is not the same as income tax, and you pay this separately on your earnings too.
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