Class 1 rates and thresholds
Class 1 - Employed and contracted-out - Rates and thresholds
| 2019/20 Employee (%) | 2019/20 Employer (%) | 2020/21 Employee (%) | 2020/21 Employer (%) | |
|---|---|---|---|---|
| Below Lower Earnings Limit (LEL) | 2019/20 Employee— | 2019/20 Employer— | 2020/21 Employee— | 2020/21 Employer— |
| Above LEL to Earnings Threshold (ET) | 2019/20 Employee— | 2019/20 Employer— | 2020/21 Employee— | 2020/21 Employer— |
| Above ET to Upper Accruals Point (UAP) | 2019/20 Employee 10.6 | 2019/20 Employer 10.0 | 2020/21 Employee 10.6 | 2020/21 Employer 10.0 |
| Above UAP to Upper Earnings Limit (UEL) | 2019/20 Employee 12.0 | 2019/20 Employer 13.8 | 2020/21 Employee 12.0 | 2020/21 Employer 13.8 |
| Above UEL | 2019/20 Employee 2.0 | 2019/20 Employer 13.8 | 2020/21 Employee 2.0 | 2020/21 Employer 13.8 |
| NIC rebate between LEL and ET | 2019/20 Employee 1.4 | 2019/20 Employer 3.4 | 2020/21 Employee 1.4 | 2020/21 Employer 3.4 |
As a result of the proposed introduction of the single-tier State Pension, contracting out via a defined benefit pension scheme will no longer be possible from 6 April 2016.
From 6 April 2015 employers will no longer be required to pay Class 1 NICs on earnings up to the UEL for any employee aged under 21