Living Wage and National Insurance

Treasury written question – answered on 25th November 2021.

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Photo of Margaret Ferrier Margaret Ferrier Independent, Rutherglen and Hamilton West

To ask the Chancellor of the Exchequer, what estimate he has made of the threshold number of full time equivalent employees on the (a) National Living Wage and (b) the average national wage that can be employed before an employer is liable to pay employer National Insurance Contributions from April 2022.

Photo of Mary Glindon Mary Glindon Opposition Whip (Commons)

To ask the Chancellor of the Exchequer, what assessment his Department has made of how many full time equivalent employees it will be possible to employ on (a) the National Living Wage and (b) the average national wage, before becoming liable to Employer National Insurance Contributions; and if he will make a statement.

Photo of Lucy Frazer Lucy Frazer The Financial Secretary to the Treasury

An employer which is eligible to claim the Employment Allowance (EA) will be able to hire up to 3 employees on the National Living Wage who work 35 hours a week, for an entire year, before they have an employer National Insurance Contributions (NICs) bill in 2022-23: https://www.gov.uk/national-minimum-wage-rates

An employer which is eligible to claim the EA will be able to hire up to 1.5 employees on the median national wage in 2021 before they have an employer NICs bill in 2022-23: https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/earningsandworkinghours/bulletins/annualsurveyofhoursandearnings/2021

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