Employers currently pay a rate of 13.8% on employee earnings above a threshold of £9,100 a year.

In the Budget, Chancellor Rachel Reeves said this rate would rise to 15% in April 2025, and the threshold would be reduced to £5,000.

To help smaller businesses, the employment allowance, which allows businesses to reduce their National Insurance liability, will increase from £5,000 to £10,500.

But several organizations in Scotland have warned that the changes could put their members under severe pressure.

Doctors’ representatives said thousands of pounds in additional staff costs could close some practices.

He Estimate from the Scottish Council of Voluntary Organizations, external The increase in National Insurance would cost £75m for the sector, which is said to employ 133,000 people, 5% of the country’s workforce.

He said voluntary bodies “cannot afford additional financial pressures”, adding: “Many have already had to subsidize public services with their own funds, and we are increasingly hearing of organizations having to close their doors.”