As the Chancellor prepares her Spring Statement amid ongoing concerns over the rate of inflation, there are suggestions that a third of businesses are planning to implement price increases to help mitigate the uplift in NIC from April.
And according to responses from SMEs, four in ten are planning to introduce staff benefits to avoid higher wage bills.
A survey conducted for Purbeck Insurance Services found that while price rises are the most common NIC mitigation measure, training and alternatives to pay rises are also on the cards.

Almost a third plan to invest in training and development to make the best use of current resources; and 3many are also looking at salary sacrifice benefit schemes. This may include pension contributions, cycle to work schemes, childcare vouchers, additional annual leave and health and well-being benefits.
While 19 per cent plan to reduce headcount, 13 per cent of those surveyed said they are taking a pay cut themselves.
The survey of businesses employing up to 250 staff also found that 21 per cent plan to use the Enhanced Employment Allowance which will rise from £5,000 to £10,500 per year. A business can claim Employment Allowance if they their employers’ Class 1 National Insurance liabilities were less than £100,000 in the previous tax year.
Purbeck MD Todd Davison said: “Many SMEs are planning to maximise the skills of their existing employees rather than take people on according to the survey. They are also finding new ways to reward staff over and above financial remuneration.
“There is little doubt the NIC hike is making businesses think hard about where they can save on their salary bills. This may have unintended consequences for those SMEs competing for skills against larger businesses with deeper pockets as well as those that offer overtime pay and bonuses.