The increase is to help the NHS and social care in the UK to deal with the backlog created by the pandemic.
NICs will be rising 1.25 percentage points for all employees and employers in the UK. Currently, the rate for employees is 12% of their earnings. From 6th April 2022 the rate will rise to 13.25%. The rate for employers is currently 13.8%, which will rise to 15.05% from 6th April 2022.
NICs are worked out in a similar way to income tax and below is an example of how it will affect a Class 1 employee.
Someone employed full time being paid the average UK salary of £31,285 currently pays £2,606.04 per year. From 6th April 2022 this will increase by £230.12 to £2,836.16 a year.