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Reduction in National Insurance contributions

14 December 2023

The government's autumn statement announced a reduction of 2 percentage points in employees National Insurance contributions main rate from 6 January 2024.

Generally, if you pay National Insurance on your earnings, this will mean that your net pay will rise.

From 6 January 2024 National Insurance contributions based on your earnings will be calculated as follows:

  • no national insurance payable if you earn less than £1048 per month
  • 10% (a decrease from 12%) on earnings between £1,048 and £4,189 a month
  • 2% on income over £4,189 a month

The government has shared some of its estimates for those who pay National Insurance.

Impact on salary sacrifice schemes

If you take part in our salary sacrifice schemes (including shared cost additional voluntary contributions, cycle to work and childcare vouchers) you won't need to make any changes to your deductions but you may notice a change in the amount of National Insurance savings you make.

Find more information about all our salary sacrifice schemes.