The 1.2% increase in employer NICs to 15% from April means that the average monthly employer contribution will increase from £147.95 to £230.54 per employee, equivalent to £83 per head for the business, a figure which is made worse due to the halving of the threshold at the same time.

This means the annual cost per employee will be £2,500 taking into account NI and the 6.7% rise in minimum wage.

At the same time, increases to minimum wage rates to £12.21 for those aged 21 and over will see the average salary for an employee working 40 hours a week increase by £123 from £1,830 to £1,954 per month, showed analysis by the Global Payroll Association.

The rise in employment costs is already putting companies off hiring new staff, with the total number of vacancies dropping sharply since the Budget in October. While the new 1.2% rise in NICs is not due to come into effect until 6 April 2025, there are already warnings that the added costs for business are denting growth.