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 to see exactly how the changes affect your pay, or try the full Take-Home Pay Calculator for a complete breakdown.