WORKERS are set for an increase in their take-home pay this week amid National Insurance changes coming into force.
As of Wednesday, July 6 2022, the threshold at which Brits will start contributing to National Insurance payments will rise from £9880 to £12,570.
It comes after the National Insurance price hike, announced by Boris Johnson last year, came into effect in April.
The Prime Minister announced a 1.25 percentage point increase in National Insurance last September to address the funding crisis in England's health and social care system.
Starting from Wednesday, July 6, payslips will start to look a little different, but how much extra will you get?
How much extra pay will I get after the National Insurance change?
A typical employee will save over £330 in the year from July, according to the UK Government.
According to the Press Association, an individual on a £40,000 salary would pay £304.32 a month on National Insurance, prior to the 1.25 per cent hike.
Currently, they will pay £332.58 a month.
Following the change in the threshold on July 6, you would pay £302.87 a month.
According to Hargreaves Lansdown, someone earning £20,000 would have had a monthly NI bill of around £104 before April, which then rose to £112 and will drop to around £82 following the July changes.
Someone on £30,000 would have paid around £204 per month before April, then rising to £222 and they will now see this fall to around £192.
Someone on £50,000 will pay around £413 per month from July, up from around £404 before April, and someone earning £60,000 will pay around £443 from July, up from £423 before April, according to Hargreaves Lansdown.
The UK Government has said seven in 10 (70%) workers who pay National Insurance contributions (NICs) will pay less.
However, with the cost of living crisis worsening and inflation set to hit 11%, many households may not feel better off in practice, even with more money in their pay packet.
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