Legal & General to cover increased employer National Insurance contributions

For Group Income Protection clients

Hemma Visavadia
clock • 1 min read

With National Insurance (NI) contributions set to rise by 1.25% in April, Legal & General has announced policy changes to help employers who offer NI cover as part of their group income protection (GIP) schemes adjust to the increases.

The changes will see employers' GIP cover automatically account for the NI rise, as well as new taxes related to health and social care which will come into effect from 6 April 2023. The 'Health & Social Care Levy' will see employers and employees alike pay an additional 1.25%, although during this period contributions will return to the 2021 to 2022 tax year levels. As part of the changes, the government stated it will also start collecting levy payments from employees who no longer pay NI due to them reaching their state pension age. Legal & General stated that premium rates will...

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