Exact date that millions of workers will receive a salary increase within DAYS

MILLIONS of workers are going to get a pay rise thanks to a change that comes within days.

New rules for National Insurance will reduce the amount of taxes people pay, resulting in a much-needed increase in income.

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The threshold for making National Insurance Contributions (NICs) will rise from £ 9,500 to £ 12,570 from 6 July.

This is because households are under pressure to keep up with rising costs of food and fuel to energy bills.

Chancellor Rishi Sunak urged Sun readers to see how much more they will see in their pay package using the government’s handy tool.

It is estimated that someone earning £ 15,000 a year will pay £ 338 less NICs a year.

In the meantime, with an annual salary of £ 25,000 you will pay £ 244 less, and at £ 35,000 your NICs will decrease by £ 150.

The exact amount of the cash increase depends on how much you earn and may be affected by other things, such as bonus payments or salary deductions.

The increase to the National Insurance Threshold will take effect from 6 July and you should see it on your next pay slip after this date.

The tax cut will cause workers to pay on average £ 330 less for NICs – and some will not pay NICs at all now.

You can try the handy online tool on the government’s website to get an estimate – all you have to do is enter your annual salary.

The tax change was first announced in March by Mr Sunak to try to tackle the cost-of-living crisis.

Prices are rising at a rate of 9.1% according to the latest inflation figures and this could worsen to 11% as experts have warned.

That means everyday items like groceries and gasoline cost a lot more than they did this time last year.

But wages are not rising at the same rate that is hurting millions of Britons’ finances

The government has also announced a package of support worth up to £ 1,500 for the most difficult households.

Millions on Universal Credit and other benefits will receive the first half of a £ 650 living expenses payment from 14 July.

But the tax change comes after a national insurance increase on April 6, in which millions paid MORE.

The social care levy added 1.25 percentage points to National Insurance Rates.

Overall, both changes mean that anyone earning less than £ 31,500 is better off, experts at AJ Bell said.

Laura Suter, head of personal finance, said: “From July 6, millions of people will see their national insurance bills reduced as the threshold at which people start paying taxes is raised to £ 12,570.

“The move means that most people with an annual salary of up to £ 12 570 will pay no income tax and no national insurance.

“Although it will be a welcome relief for many people to see the amount deducted for National Insurance on their salary slip from next month, we are all still paying more taxes than when Chancellor Rishi Sunak started changing the system. ”

What is National Insurance?

National insurance is a tax paid by workers above a certain level of earnings.

The contributions help to fund benefits such as the State Pension, sick pay and unemployment benefits.

All UK citizens automatically receive an NI number (and NI card) before they turn 16.

Your NI number helps the government track your earnings and levy the correct amount of tax.

You are currently paying National Insurance when you are 16 and earning more than a certain amount.

Workers are currently paid 13.25% on earnings between £ 9,564 and £ 50,268 and a further 3.25% is paid on wages above that.

The tax is deducted from your wages every month and you can see on your salary slip how much you pay.

Once you have reached state retirement age, you do not have to pay National Insurance at all. National Insurance is not the same as income tax, and you also pay it separately on your earnings.

National Insurance works differently if you are self-employed.