As the cost of living crisis continues, millions of UK workers are set to see more money hit their accounts each payday thanks to the scrapping of a tax hike.
National Insurance contributions rose by 1.25% back in April, but the tax rise has now been reversed.
Most UK workers will see a reduction in their NI contribution in November’s pay, however some may need to wait until December or January.
The Treasury has said that the reversal of the NI hike will mean that almost 28 million people across the UK will keep an average of £330 extra of their money in 2023.
As well as this, 920,000 business will save an average of almost £10,000.
However not every worker will see the same amount back as those who benefit the most from the reversal are those who have the highest salaries.
Here’s what you will save depending on your salary:
- Workers on £20,000 will save £92.88 a year
- Workers on £30,000 will save £217.88 a year
- Workers on £50,000 will save £467.88 a year
- Workers on £75,000 will save £780.38 a year
- Workers on £100,000 will save £1092.88 a year
The NI rise was originally introduced by Boris Johnson’s government at the start of the year, but was then reversed by then Chancellor Kwasi Kwarteng in his infamous mini-budget in October.
However, the scrapping of the National Insurance rise is one of few economic policies introduced by Kwasi Kwarteng that has not been axed by the current Chancellor Jeremy Hunt.