BUDGET: National Insurance contributions to increase

Class 1 threshold to go up by 10%

Changes are being made to National Insurance contributions on the Isle of Man.

They’ve been revealed as part of the 2024-2025 Budget which has been unveiled in Tynwald today (20 February).

• The primary and secondary threshold for Class 1 NI, and the lower profit limit for Class 4 NI, will be increased by 10 percent to £160 per week.
• The upper earnings limit for Class 1 NI, and the upper profits limit for Class 4 NI, will be increased by 8.5 percent to £938 per week.
• Class 2 and Class 3 NI contribution rates will be increased by 8.5 percent to £6.20 and £18.95 respectively.

Treasury has also confirmed the National Insurance ‘holiday scheme’ will continue for a further year.

Minister Alex Allinson said: "Last year Treasury published the report by the UK Government Actuary into the operation of the Manx National Insurance Fund.

"It showed that if no action was taken the fund would be exhausted by 2047/48.

"I have therefore asked Treasury to complete a review into the operation of the fund so that we can ensure that it remains fit for purpose.

"This review looks at the size of the fund, how it should be invested and what part it should play in supporting the costs of our health service.

"The review will also look at the expenditure from the fund of which the most significant is the state retirement pension.”

Tynwald will vote on the Budget later today.

Find out more about this year's Budget and how it will affect you by clicking HERE.