Rises in National Insurance, as outlined in the 2002 Budget speech, are as follows for 2003/2004:-
- The employee's Primary Class 1 National Insurance rate is increased by 1% to 11% on earnings between the Primary Threshold (£89 per week) and Upper Earnings Limit (£595 per week).
- Employees will, in addition, pay 1% Primary Class 1 National Insurance on all earnings above the Upper Earnings Limit.
- The Employer's Secondary Class 1 contribution rate on earnings above the Secondary Threshold (£89 per week) will increase by 1% to 12.8%.
- The self-employed Class 4 rate on profits between the lower (£4,615) and upper profits limit (£30,940) will increase by 1% to 8%.
- The self-employed will, in addition, pay Class 4 contributions at a rate of 1% on all profits over the upper profits limit.