National Insurance Cut to 8%: What It Means for You

## National Insurance Drops to 8% from April 2024 In a significant change for UK employees, the main rate of National Insurance contributions has been cut from 10% to 8% from 6 April 2024. This follows an earlier reduction from 12% to 10% in January 2024. ### The Changes | Period | Main NI Rate | |--------|-------------| | Before January 2024 | 12% | | January - April 2024 | 10% | | From April 2024 | 8% | ### Who Benefits? All employees earning between £12,570 and £50,270 benefit from this change. The reduction applies to earnings in this band only - the 2% rate on earnings above £50,270 remains unchanged. ### How Much Will You Save? | Annual Salary | Annual Saving | |---------------|---------------| | £25,000 | £249 | | £35,000 | £449 | | £45,000 | £649 | | £50,270+ | £753 | The maximum annual saving is £753 for those earning at or above the Upper Earnings Limit. ### Monthly Impact On a £35,000 salary, you'll see approximately **£37 more per month** in your pay packet compared to the 10% rate. ### What About Self-Employed? Self-employed workers paying Class 4 National Insurance also see changes: - Main rate reduced from 9% to 6% - Class 2 NICs no longer required (but can be paid voluntarily) ### Calculate Your New Take-Home Use our [National Insurance Calculator](/calculators/national-insurance) to see exactly how the changes affect your pay, or try the full [Take-Home Pay Calculator](/calculators/take-home-pay) for a complete breakdown.