Payroll Legislation

Health & Social - National Insurance contribution increase

Legislation

Health & Social - National Insurance contribution increase

Due Date

April 2022

Summary

The UK Government announced a new 1.25% Health and Social Care Levy to fund investment in the NHS and social care on 7th September 2021. National Insurance contributions for working age employees, self-employed people and employers will increase by 1.25% from 6th April 2022.

From 6th April 2023, the Levy will be separated from National Insurance contributions (NICs); the Levy will go directly on spending for health and social care across all parts of the UK and, according to the announcement at the time, National Insurance contribution rates will return to 2021-22 levels.

From 6th April 2022, where possible, a payslip message should be included on employee payslips; it should read ‘1.25% uplift in NICs funds NHS, health & social care’.

The table below shows an example of the increase in NIC payable from 6th April 2022 as well as the new PT threshold from 6 July 2022 relating to an employee on category A.

 ​ Standard NICs - A​ Health & Social Levy - A​ Increases per annum​ 
Annual ​Monthly​Calc EEs​Calc ERs​Calc EEs​Calc ERs​EEs​ERs​
20000.00​1666.67​101.24​125.40​111.79​136.75​126.55​136.30​
30000.00​2500.00​201.24​240.40​222.20​262.17​251.55​261.30​
40000.00​3333.33​301.24​355.40​332.62​387.59​376.55​386.30​
50000.00​4166.67​401.24​470.40​443.04​513.00​501.55​511.30​
60000.00​5000.00​420.14​585.40​472.35​638.42​626.55​636.30​

Payroll Legislation Guide

Do you know the dates of all the complex payroll legislation changes? Are you aware of what you need to do to ensure your business is compliant? Many UK businesses aren’t aware…