Class 1 rates and thresholds
Class 1 - Employed and contracted-out - Rates and thresholds
| 2025/26 Employee (%) | 2025/26 Employer (%) | 2026/27 Employee (%) | 2026/27 Employer (%) | |
|---|---|---|---|---|
| Below Lower Earnings Limit (LEL) | 2025/26 Employee— | 2025/26 Employer— | 2026/27 Employee— | 2026/27 Employer— |
| Above LEL to Earnings Threshold (ET) | 2025/26 Employee— | 2025/26 Employer— | 2026/27 Employee— | 2026/27 Employer— |
| Above ET to Upper Accruals Point (UAP) | 2025/26 Employee 10.60 | 2025/26 Employer 10.00 | 2026/27 Employee 10.60 | 2026/27 Employer 10.00 |
| Above UAP to Upper Earnings Limit (UEL) | 2025/26 Employee 8.00 | 2025/26 Employer 15.00 | 2026/27 Employee 8.00 | 2026/27 Employer 15.00 |
| Above UEL | 2025/26 Employee 2.00 | 2025/26 Employer 15.00 | 2026/27 Employee 2.00 | 2026/27 Employer 15.00 |
| NIC rebate between LEL and ET | 2025/26 Employee 1.40 | 2025/26 Employer 3.40 | 2026/27 Employee 1.40 | 2026/27 Employer 3.40 |
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