MILLIONS of UK workers are set for a pay rise this week amid National Insurance changes coming into force.

As of Wednesday, July 6 2022, the threshold at which Brits will start contributing to National Insurance payments will rise from £9,880 to £12,570.

The change will see around two million low-income workers not pay any National insurance at all while millions more will see a reduction in their tax bill.

It comes after the National Insurance price hike, announced by Boris Johnson last year, came into effect in April.

The prime minister announced a 1.25 percentage points increase in National Insurance last September to address the funding crisis in the health and social care system.

The tax hike will raise around £10 billion, which will be spent on the NHS as it recovers from the Covid-19 pandemic as well as to help people avoid crippling adult social care costs.

Despite millions of workers seeing tax rises at the start of the new tax year, Chancellor Rishi Sunak said that seven out of 10 people will be paying less National Insurance following the changes in July.

National Insurance calculator - see how much you could save

The government has introduced an online calculator which will show how much more of your paycheck you will keep as a result of the National Insurance changes.

Simply type in your annual salary and the calculator will provide an estimate of how much you could save in National Insurance contributions.

HMRC data showed that the average UK salary at the start of 2022 was £24,600.

Based on this, workers are estimated to pay £248 less each year.

Rishi Sunak also announced earlier this year that income tax will be cut by 1p in April 2024.

Most people start paying income tax after the £12,570 threshold. It means the amount of tax you pay will drop from 20p to 19p per pound when the changes come into force.