Page 43 - P4403.59-V64_Numark Pharmacy Magazine June 25

EMPLOYER CONTRIBUTIONS TABLE AT DIFFERENT SALARY LEVELS
BEFORE TAKING ACCOUNT OF THE EMPLOYMENT ALLOWANCE.

Salary Ers NICs Ers NICs Increase
£10,000 £124 £750 £626
£20,000 £1,504 £2,250 £746
£30,000 £2,884 £3,750 £866
£40,000 £4,264 £5,250 £986

£50,000 £5,644 £6,750 £1,106
£60,000 £7,024 £8,250 £1,226
£70,000 £8,404 £9,750 £1,346
£80,000 £9,784 £11,250 £1,466

HOW ARE PHARMACIES AFFECTED?

The British Retail Consortium predicted that rising employer NICs could lead to job
losses and price increases in some sectors.

Micro-businesses, with just a few employees, may be hit the hardest. Unlike larger
firms, they often lack the financial flexibility to absorb additional payroll costs. Many
are already dealing with rising expenses in other areas, such as energy bills and supply
chain price increases. These businesses may face difficult choices, from delaying
expansion plans to reducing staff hours or increasing prices for customers.

STEPS PHARMACIES CAN TAKE
While the NIC increase is unavoidable, there are steps businesses can take to manage
the financial impact:

• Part time possibilities: - employers could consider taking one or two part-time
employees instead of one full-time employee to access an additional
secondary threshold.

• Employee mix: - if employers are adversely affected by the changes they may
wish to revisit their employee mix. For example, consider recruiting employees
under the age of 21 or armed forces veterans who have recently left armed
forces to take advantage of the higher secondary thresholds for these members
of staff.
• Use the Employment Allowance: Eligible businesses should ensure they claim
the full allowance to reduce their NIC liability.
• Consider workforce planning: –Outsourcing non-core roles could help
mitigate costs.
• Review payroll budgets: Employers should reassess staffing costs and adjust
financial forecasts to factor in the increased NIC burden.