I came across this, employers that recruite under 21 yearolds and under 25 apprentices pay £0 national insurance contributions.
I constantly hear employees complaining about the increase s imposed by the government.
Below is the question I asked to Goole and the reply.
Question
"UK employers ni contribution for young people"
Answer
"Employers pay 0% Class 1 National Insurance (NI) contributions for employees under 21 and apprentices under 25 on earnings up to £967 a week (£50,270 per year). This relief applies to earnings above the Secondary Threshold up to the Upper Secondary Threshold, offering significant savings for hiring young people.
GOV.UK
GOV.UK
+4
Key Details on Young Worker NI Contributions:
Under 21 Employees (Category M): No employer NICs are due on earnings up to the Upper Secondary Threshold (UST).
Apprentices Under 25 (Category H): No employer NICs are due if they are on an approved government apprenticeship framework and earn below the UST (£967/week or £50,270/year).
Thresholds (2024/25): While 0% is paid up to £967/week, employers pay the standard 13.8% rate on any earnings exceeding this threshold."
Either government or Employers appear to being ecomonical with the truth.
I guess the question you need to ask is what proportion of the workforce are 0% contribution? Probably not enough to put a dent in the cost associated with the increase in NI.
While it is undoubtedly cheeper to employ a younger person, they often do not have the skills or maturity of an older employer. Furthermore the supervision required can be significant in trades such as electrical and mechanical apprenticeships. They are a long term investment, not a quick fix to rising cost of labour.
