Income tax: Wales The National Assembly for Wales decided not to make any changes from the rates of the rest of the UK (excluding Scotland). National insurance contributions The secondary threshold for employer’s Class 1 NICs will increase by 3.3%, approximately in line with inflation to September 2021. The upper earnings limit (for employees) and upper profits limit (for the self-employed) will be frozen at £50,270, matching the unchanged UK higher rate income tax threshold outside Scotland. The Class 2 NIC rate for 2022/23 will be £3.15 per week. The rates for all contributions under Class 1 (employed) and Class 4 (self-employed) will rise by 1.25 percentage points for 2022/23 only, before dropping back to 2021/22 levels after that. The separate 1.25% Health and Social Security Levy will then take effect from 6 April 2023. Unlike the position with NICs, employees and the self-employed over state pension age (currently 66) will be subject to the new levy. Automatic pension enrolment The contribution levels for workplace pensions operating under the automatic enrolment provisions for 2022/23 will be unchanged: 2021/22 and 2022/23 Earnings trigger for auto-enrolment £10,000 Employer minimum contribution 3% of band earnings £6,240 – £50,270 Employee contribution* 5% of band earnings £6,240 – £50,270 Total minimum contribution 8% of band earnings £6,240 – £50,270 Maximum potential total contribution £3,522 * Assuming employer pays minimum required by law 6 SPRING STATEMENT l 23 March 2022
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