National minimum wage and National Insurance changes hit pay packets from this week
Posted on in Business News , Cycles News , Political News
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National Living Wage and National Minimum Wage rates increased from 1st April 2022. As an employer, you are obligated to update your payroll so your employees get paid at least what they are legally entitled to.
The National Living and Minimum Wage rates are listed below:
| 23 and over | 21 to 22 | 18 to 20 | Under 18 | Apprentice | |
| Before April 2022 | £8.91 | £8.36 | £6.56 | £4.62 | £4.30 |
| From April 2022 | £9.50 | £9.18 | £6.83 | £4.81 | £4.81 |
| Increase Percentage | 6.6% | 9.8% | 4.1% | 4.1% | 11.9% |
Employees are being urged to check if they're being paid correctly through the Check Your Pay campaign which also provides advice to employers to ensure they understand what they need to do to pay their employees correctly.
How National Insurance will change
Employees pay National Insurance on their wages, employers pay extra contributions for staff, and the self-employed pay it on their profits.
In September, the government announced the rise in contributions from 6 April, in part to help ease the burden on the NHS.
It means that, instead of paying National Insurance contributions of 12% on earnings up to £50,270 and 2% on anything above that, employees will now pay 13.25% and 3.25% respectively. The self-employed will see equivalent rates go up from 9% and 2% to 10.25% and 3.25%.
From now, employees will pay National Insurance contributions on earnings above £9,880 a year. From July, it will be paid on earnings above £12,570 a year.
Those of state pension age do not pay the tax at present, and nor do those on very low incomes.