10th September 2021
With the news that Boris Johnson will be raising National Insurance by 1.25% next April, a Gloucestershire based digital marketing company has announced it will give its entire workforce a pay rise to cover the drop in income.
The 34-year-old founder of 71a, Edward Newman, has promised every member of his team a pay rise in addition to their usual annual salary increase to cover the sharp hike in national insurance.
CEO and founder of 71a, Edward Newman, said:
"I understand why national insurance contributions need to go up next year, but I didn't want to see my team under financial pressure. This increase is enough to force them to have to think about what they might need to cut back on, and I didn't want any of them worrying about it. We've all been through so much in the past year and a half; the least I could do is remove this stress.
If they can afford to, I believe every business owner should follow suit. From what I understand, companies will take a double hit because of the increase in employers national insurance contributions as well, so it’s important you stress test your budgets before promising anything.
I want to make sure my team don't feel like they've had a pay cut and can continue with the lifestyle they're used to. For some employees, the difference is an additional £42 month, which for those with single income families is a full tank of petrol or a couple of week's worth of lunches."
Marketing assistant at 71a, Amy Harker, said:
"Ed just came in yesterday morning and announced that none of us had to worry about the National Insurance increase next year, and we were all a bit speechless.
We had been chatting about it in the office and agreed the hike was the equivalent of our monthly mobile phone bill and how we'd have to go without certain things. We were all so relieved and delighted to hear the news this morning. Ed's a really generous boss, and we're very grateful."