Business
What are National Insurance and income tax and what could change in the Budget?
Getty ImagesThere has been speculation that November’s Budget could see Chancellor Rachel Reeves break Labour’s pre-election pledge not to increase income tax, National Insurance (NI) or VAT for working people.
It’s been suggested that she could extend a freeze to the income thresholds at which people start paying the taxes, or have to pay more.
What is National Insurance and what does it pay for?
The government uses National Insurance to pay benefits and help fund the NHS.
It is paid by employees, employers and the self-employed across the UK. Those over the state pension age do not pay it, even if they are working.
Eligibility for some benefits, including the state pension, depends on the National Insurance contributions (NICs) you make across your working life. It may be possible to make voluntary payments to fill gaps in your contribution history.
How much do employees pay in National Insurance?
The type and amount of NI you pay depends on your age, employment status and income.
Workers start paying NI when they turn 16 and earn more than £242 a week, or have self-employed profits of more than £12,570 a year.
The amount owed is usually deducted automatically from employees’ wages along with income tax.
The starting rate for NI for employees fell twice in 2024: from 12% to 10%, and then again to 8%. The previous Conservative government said these cuts were worth about £900 a year for a worker earning £35,000.
For the self-employed, the rate of NI paid on all earnings between £12,570 and £50,270 fell from 9% to 6%. This was said to be worth £350 to a self-employed person earning £28,200.
Most self-employed people pay their NICs through their self assessment tax return.
The NI rate on income and profits above £50,270 is 2% for all workers.
How much do employers pay in National Insurance?
Since April 2025, employers pay NI at 15% on most employees’ wages above £5,000. They previously paid 13.8% on salaries above £9,100.
Businesses also pay 15% NI on expenses and benefits they give to their staff – such as company cars or health insurance.
The employment allowance – the amount employers can claim back from their NI bill – rose from £5,000 to £10,500.
What are the current income tax rates?
You have to pay income tax on your earnings from employment, or profits from self-employment, above the tax-free personal allowance of £12,570.
Income tax is also paid on some benefits and pensions, income from renting out property, and returns from savings and investments above certain limits.
The basic rate of 20% is paid on annual earnings between £12,571 and £50,270.
The higher rate of 40% is paid on earnings between £50,271 and £125,140.
Once you earn more than £100,000, you also start losing the £12,570 tax-free personal allowance. You lose £1 of your personal allowance for every £2 that your income goes above £100,000.
Anyone earning more than £125,140 a year no longer has any tax-free personal allowance.
They also pay an additional rate of income tax of 45% on all earnings above that amount.
These rates apply in England, Wales and Northern Ireland.
Some income tax rates are different in Scotland, where a new 45% band took effect in April 2024. At the same time the top rate also rose from 47% to 48%.
What are NI and income tax thresholds and why do they matter?
Changes to the income thresholds mean that millions are paying more tax overall, despite the 2024 NI cuts.
The thresholds are the income levels at which people start paying NI or income tax, or have to pay higher rates. These used to rise every year in line with inflation.
However, the previous Conservative government froze the NI threshold and tax-free personal allowance at £12,570 until 2028. It also kept the higher-rate tax threshold at £50,270.
Prime Minister Sir Keir Starmer and the chancellor have both refused to rule out extending the current freeze.
Freezing the thresholds means that more people start paying tax and NI as their wages increase, and more people pay higher rates.
According to the Institute for Fiscal Studies (IFS) think thank, the freeze cancelled out the benefits of the 2024 NI cuts for some workers.
In the 2024-25 tax year, it said an average earner would have a tax cut of about £340 – from the combined tax changes – and people earning between £26,000 and £60,000 would be better off.
But by 2027, it said the average earner would be only £140 better off – and only people earning between £32,000 and £55,000 a year would still benefit.
NEW DELHI: People with job cards assigned under Mahatma Gandhi National Rural Guarantee Scheme will be able to get work without disruption when transition takes place to new rural employment framework under Viksit Bharat-Guarantee for Rozgar and Aajeevika Mission (Gramin) Act.Even though exact timeframe is not known yet, rural development ministry officials said the VB-G RAM G scheme will come into force in the coming financial year after the Centre frames and notifies the rules. After govt notifies the Act’s commencement date, states will get six months to make their schemes to enable implementation of the law.To ensure there is no disruption and job guarantee is upheld during transition from MGNREGA, it has been proposed to enable workers to use the same job cards issued under MGNREGA with Aadhaar-based eKYC.The officials said that as of now, around 75% of job cards have been verified with eKYC under the ongoing scheme. Moreover, ongoing projects under MGNREGA, if incomplete when the transition happens to the new scheme, would stay on course.Meanwhile, work is on to frame rules, lay out regulations on normative allocations, fund flow plan, IT framework, a national-level steering panel and social audits.Under the new law, focus will be on transparency to weed out leakages and duplicacy of work,the social audit system will be strengthened, and technology leveraged to create systems to establish work progress, timely wage payment and accountability through ‘e-measurement’ books, sources said. Demand for work will have to be entered on a digital platform. Officials made it clear the new law in no way interferes with demand-driven character of the scheme.
Business
Gurugram Attracts Rs 86,588 Crore In Real Estate Investments In 2025 As RERA Clears 131 Projects
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Alongside rising investments, Gurugram RERA strengthened regulatory oversight to safeguard homebuyer and investor interests
Gurgaon Real Estate (Representative Image)
Gurugram emerged as one of India’s top real estate investment destinations in 2025, with projects worth Rs 86,588 crore receiving regulatory approvals during the year, according to data from the Gurugram Real Estate Regulatory Authority (Gurugram RERA).
Market observers said the numbers reflect strong investor confidence in the NCR’s largest commercial and residential hub.
Gurugram RERA registered 131 projects in calendar year 2025, representing development potential of 35,455 units across housing and commercial segments.
A striking feature of the data was the dominance of large-ticket projects. Just 28 major developments accounted for investments worth Rs 59,360 crore, highlighting the growing influence of institutional capital and large developers in shaping Gurugram’s property market.
Residential assets continued to attract the bulk of investment interest. Of the total units approved, 31,455 were residential, underscoring sustained end-user demand and long-term confidence in the city’s housing fundamentals.
According to Authority data, the residential mix included 17,405 group housing units, 5,720 mixed land use units, 4,040 residential floor units, 2,122 affordable group housing units, 1,954 units under the Deen Dayal housing scheme, and 214 residential plotted colony units.
Market observers said this diversified supply pipeline indicates capital deployment across both premium and mass segments, helping reduce concentration risk and deepen market resilience.
On the commercial side, Gurugram RERA approved about 4,000 commercial units, of which 168 were dedicated to IT parks, reinforcing Gurugram’s position as a preferred hub for technology firms and Global Capability Centres.
Analysts noted that the combination of office-led employment growth and residential expansion continues to make Gurugram attractive for long-term capital deployment.
Industry experts said the scale of investments approved in 2025 highlights Gurugram’s ability to attract capital despite global uncertainty, supported by infrastructure growth, a strong corporate base and an improving regulatory environment.
“With a large pipeline of approved projects and sustained interest from developers and institutional investors, Gurugram is expected to remain a key real estate investment destination in the coming years,” a Gurugram-based real estate expert said.
Tighter regulatory checks
Alongside rising investments, Gurugram RERA strengthened regulatory oversight to enhance transparency and safeguard homebuyer and investor interests.
“These steps included stricter scrutiny of developer submissions, mandatory site inspections by domain experts, and public consultation through mandatory notices before project registration,” an Authority official said.
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January 16, 2026, 07:44 IST
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National Startup Day highlights India’s thriving startup ecosystem, celebrating innovation, entrepreneurship and job creation driven by founders, unicorns and Startup India mission
National Startup Day 2026 honours Indian startups, entrepreneurs and innovators driving economic growth and job creation.
National Startup Day 2026: India’s startup ecosystem has evolved into one of the world’s most vibrant and promising innovation hubs. To recognise the contribution of entrepreneurs, founders and startups transforming ideas into impactful solutions, National Startup Day is observed every year on January 16 across the country.
Launched by Prime Minister Narendra Modi in 2022, the day celebrates visionary entrepreneurs who play a crucial role in economic growth, employment generation and technological advancement.
National Startup Day serves as a reminder that innovation, backed by determination and policy support, can reshape society and create global impact.
National Startup Day 2026 Theme
The official theme for National Startup Day 2026 is yet to be announced. However, the core focus areas are expected to revolve around:
- Innovation and emerging technologies
- Entrepreneurship and leadership
- Self-reliance (Atmanirbhar Bharat)
- Startup India Mission
- Youth empowerment
- Job creation
How Startups Are Shaping India’s Future
India currently ranks as the third-largest startup ecosystem globally, with over 1.59 lakh startups recognised by the Department for Promotion of Industry and Internal Trade (DPIIT) as of early 2025. Backed by 100+ unicorns, the ecosystem continues to grow rapidly.
Metro cities such as Bengaluru, Hyderabad, Mumbai and Delhi-NCR lead this expansion, while Tier-2 and Tier-3 cities are emerging as new innovation centres, adding diversity and scale to India’s entrepreneurial journey.
Startups across fintech, edtech, health-tech, e-commerce and deep-tech are addressing real-world challenges and gaining global recognition. Technologies like artificial intelligence, blockchain and IoT are increasingly driving innovation, according to Startup India ecosystem reports.
Industry-Wise Startup Impact
DPIIT-recognised startups have generated over 16.6 lakh direct jobs across sectors as of October 31, 2024, strengthening India’s employment landscape.
- IT Services: 2.04 lakh jobs
- Healthcare & Life Sciences: 1.47 lakh jobs
- Commercial & Professional Services: 94,000 jobs
Through the Startup India initiative, the government continues to focus on skill development, funding access, ecosystem collaboration and global outreach.
Key Initiatives Under Startup India
- Capacity building and mentorship
- Outreach and awareness programmes
- Ecosystem development events
- International exposure and global linkages
- Collaboration between startups, corporates and institutions.
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January 16, 2026, 07:00 IST
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