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Employers' Contributions

Question for Treasury

UIN 77456, tabled on 18 November 2021

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.

Answered on

25 November 2021

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

Answered by

Treasury