The measure

With the exception of the abolition of employers' National insurance contributions (NICs) for under-21 year olds earning less than £813 per week, Class 1, Class 1A and Class 1B National Insurance rates remain unchanged. Class 4 rates are not affected by this measure. In respect of Class 1, 1A, 1B, thresholds and limits are subject to a small increase. The lower earnings limit will increase from £109 to £111 per week and the upper earnings limit will increase from £797 to £805. Class 2 NIC rates will increase to £2.75 per week. Class 3 NIC will increase to £13.90.

Who will be affected?

All employers and employees.


The threshold changes will take effect from April 2014. Under-21 year old relief will come into effect from April 2015.

Our view

The introduction of the under-21 year olds relief will be a welcome boost for youth employment rates.

Research and insight

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