Research: The Pension Policy Institute - Briefing Note 112
Its own number-crunching reveals those earning between £12,600 and £16,000 will see an increase in their take-home pay after taking into account all of the policy changes. Meanwhile, those employees who would have paid the reduced higher NI contribution of 2% will now have a greater proportion of their income subject to the 12% NI contributions.
It finds:
* The effect on take-home pay is greatest when income hits £47,600 where the effects of higher contributions and the shift in the NI upper earnings limit are compounded
* The results are an overall reduction of 1.9% in take- home pay
