The majority of employees are unaware of the impact the rise in National Insurance contributions will have on their salary, according to a new survey.
The research, by accountancy firm KPMG, showed 60 per cent of workers had no idea how much they will be paying after April 7, when contributions rise by one per cent to 11 per cent on income of more than £89 a week.
The increase, which was announced in last year's Budget, will leave an employee earning £20,000 a year, £154 worse off.
Andrew Smith, chief economist at KPMG, said a the increase didn't sound like much but it was likely to contribute towards a slowdown in consumer spending.
He said: "The majority is unaware of the effect of the changes, which suggests many have yet to adjust their behaviour."
Thursday March 13 2003
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