More than two million low-income employees will no longer pay National Insurance due to a change in how the tax is collected.
Employees can earn £12,570 a year before paying National Insurance, up from £9,880 a year.
Although, in April, the government increased the rate paid – to improve money to fund health and social care.
Taken together, these changes mean employees earning less than about £34,000 a year will pay less.
Experts said the most recent change, which takes effect in pay packets from Wednesday, marks one more turn in the “swings and roundabouts” of National Insurance coverage.
While assisting people manage the increasing cost of living, any savings could quickly be cancelled out by increasing costs and bills.