The cap on social insurance payments which fund the Statutory Pension and Health Service will be increased as from 1st July.
The rate for employees at 10% of earnings and employers at 20% remain unchanged.
The maximum payment is now very close to the level of the minimum wage as a result of the minimum wage having gone up by 25p an hour every year since 2019 but the maximum payment not being increased since then.
Employees with earnings at the level of the national minimum wage will pay an increased contribution as a result of the 25p an hour increase in their pay on 1 July to £7.50 an hour but are not affected by the new caps which will go up by £6.05 a week at both the minimum and maximum levels.
Raising the minimum by the same amount as the maximum maintains the existing cash differential between the two levels.
The employer’s minimum payment now goes up by £9.85 a week to £28 and the maximum from £40.15 to £50 a week.
The increase in the minimum level of payment will make the use of zero hours contracts less attractive.
The rate for self-employed persons remains the same at 20% of earnings but the minimum and maximum payments will now be brought into line with the payments from employers at £25 and £50 a week.