The average worker is more than £500 a year worse off as a result of Labour’s National Insurance hike, according to Scottish Conservative analysis of official data.
The ‘jobs tax’, which came into force in April 2025, means employers now have to pay an extra £879 for every employee earning the median Scottish salary.
The Office for Budget Responsibility has warned that up to 60 per cent of the cost of this increase will be passed on by employers to workers through lower wages.
This amounts to a £527.43 annual hit to the pay of a typical Scottish worker.
Borders MP John Lamont said: “The jobs tax introduced by Rachel Reeves is forcing businesses to reduce their hours of operation, cut staff, ditch plans to invest, and scale back growth plans.
"Workers struggling with the cost-of-living are paying the price through lower wages too.
"Labour’s National Insurance hike is making working people poorer.
"Borders residents were promised change and that's exactly what they need now: a change of Chancellor so they don't have to put up with any more of the incompetence shown by Rachel Reeves."
Borders MSP Rachael Hamilton said: “It's shameful that Labour’s National Insurance increase is costing workers and employers across Scotland hundreds of pounds every year.
"Borders households are already struggling with the cost-of-living, which has become increasingly unaffordable for most families. They could have really used this extra money.
“Labour need to change course and focus on plans that support work, encourage aspiration and help businesses to grow, not measures that quietly erode people’s take-home pay.
"They must start to keep their promises and deliver more opportunities for people to get ahead."
