The increase was announced last week as part of the Chancellor's Spring Budget. However, the rise faced immediate criticism, with some accusing the Tories of breaking a 2015 manifesto pledge.
In response, CIPR president Jason MacKenzie said the proposed rise would have unnecessarily punished millions of self-employed workers, many of whom work in public relations.
He said: "I'm pleased the government has reconsidered these proposals. Entrepreneurialism must be protected and encouraged."
PRCA director-general Francis Ingham said self-employed PR and communications practitioners would welcome the government's u-turn.
Several PRs also took to Twitter to welcome the move, despite some pointing out what a "shambles" it was:
U-turn over Budget plan to increase National Insurance < welcome move but what a shambles https://t.co/CRmLg0LHOM— Sarah Hall (@Hallmeister) March 15, 2017
U-turn over Budget plan to increase National Insurance - it had to happen https://t.co/9Nwa3k7Iio— Shelley Facius (@ShelleyFacius) March 15, 2017
Budget U Turn: no National Insurance hikes for self employed. The Chancellors key announcement has been pulled.— Nina Sawetz (@NinaSawetz) March 15, 2017
During last week's Budget, the Chancellor also announced tax-free dividend allowances were to be reduced from £5,00, to £2,000. CIPR spokesman Koray Camgoz said the cut could mean investors would be less likely to invest in small businesses and independent PR practitioners.
MacKenzie said the change to tax-free dividends unfairly disadvantage the self-employed.
Ingham added that the industry also wants to tackle "staggering" business rates increases, which, according to a report in the FT in February, could bankrupt small businesses and some high street shops.