On the 6th July 2022, the NI threshold is increasing. The primary threshold is currently £190 per week and in July will increase to £242. This means that contributions will start being paid when an employees' earnings hit this amount.
This brings the NI threshold in line with the PAYE threshold for the year which is £12,570. The percentages paid by both the employee and employer remain the same so for employee, it's 13.25% and employer, 15.05%.
Although the percentages paid have increased, the increase to the threshold means that you're paying NI contributions on less of your income. The current minimum wage rates are as follows:
23 + = £9.50
21-22 = £9.18
18-20 = £6.83
16-17 and Apprentice rate = £4.81
If you have any queries regarding this or would like to change your salary due to the increase, please contact us for more information!