For the tax year 2023-24, the National Insurance Contributions (NICs) rates and thresholds for employees are as follows:

• Primary Threshold (PT): The threshold for starting to pay NICs is £242.00 per week for weekly paid employees and £1,048.00 per month for monthly paid employees.

• Upper Earnings Limit (UEL): For weekly paid employees, the UEL is £967.00, and for monthly paid employees, it’s £4,189.00.

• NIC Rates:

• • From 6 April 2023 to 5 January 2024: Employees pay NICs at a rate of 12% on earnings between the PT and UEL. Earnings above the UEL are taxed at 2%.

• • Starting from 6 January 2024, the Chancellor’s new policy will reduce the tax rate to 10% for earnings between the PT and UEL, while maintaining a 2% rate for earnings above the UEL.

Exceptions to standard NIC calculations include employees over the State Pension Age, who don’t pay employee NICs, and those with ‘deferred’ status, paying lower NICs. The GOV.UK website provides more details in the “Rates and thresholds for employers 2023 to 2024” section. Notably, the Pay Date determines NIC rates, not the work period. For example, weekly paid employees receiving pay on 5th January 2024 will be charged at 12%, while those paid on 12th January 2024 will have a 10% rate.