Increased National Insurance contribution

increased National Insurance contribution

HMRC are asking employers to help employees understand that the increased National Insurance contribution of 1.25 percentage points from 6 April 2022 is helping fund the NHS, health and social care.

They are requesting that employers include a message for affected employees on all payslips between 6 April 2022 and 5 April 2023, explaining the increased National Insurance contribution. The message should read; “1.25% uplift in NICs funds NHS, health & social care.”

If you require any further information please go to, Prepare for the Health and Social Care Levy on GOV.UK.

They have also been in contact with payroll software providers to request that they include this messaging in their software and wider support models.  But some employers will need to make the change directly.

You may have already seen this request in the December 2021 and February 2022 employer bulletins, but I wanted to make sure.

As background to this request, on the 7th of September 2021 the government announced a new 1.25% Health and Social Care Levy. This is to fund investment in the NHS, health and social care. The Levy is effectively introduced from April 2022.  From then, National Insurance contributions for employees under State Pension age will increase by 1.25 percentage points. This will also apply to the self-employed and employers.  The additional contributions will be added to the existing NHS funding allocation.

From April 2023, the Levy will be formally separated from National Insurance contributions and will also apply to the earnings of individuals working above State Pension age. National Insurance contribution rates will then return to 2021 to 2022 levels and receipts from the Levy will go directly for spending on health and social care.

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