Jeremy Hunt has cut the main rate of National Insurance by two percentage points in an Autumn Statement to kick-start economic growth in Britain.
He will bring in the measure for 27 million workers on January 6 through emergency legislation.
The Chancellor stressed that someone on the average salary of £35,000 will save over £450.
His first two personal NI tax cuts announced in the Autumn Statement were for the self-employed.
He also extended a huge tax break for businesses, announced welfare reforms to get more people into jobs, and announced that the freeze on the Local Housing Allowance would be lifted.