Class 1 rates and thresholds

Class 1 Rates and thresholds

2020/21 Weekly 2021/22 Weekly
Earnings Threshold
Lower Earnings Limit (LEL)2020/21 Weekly£ 1202021/22 Weekly£ 120
Primary Threshold (PT)2020/21 Weekly£ 1832021/22 Weekly£ 184
Secondary Threshold (ST)2020/21 Weekly£ 1692021/22 Weekly£ 170
Upper Accrual Point (UAP)2020/21 Weekly£ 9622021/22 Weekly£ 967
Upper Earnings Limit (UEL)2020/21 Weekly£ 9622021/22 Weekly£ 967
Employee Rates
Below LEL2020/21 Weekly 0.0%2021/22 Weekly 0.0%
Above LEL to PT2020/21 Weekly 0.0%2021/22 Weekly 0.0%
Above the PT to the UEL2020/21 Weekly 12.0%2021/22 Weekly 12.0%
Above UEL2020/21 Weekly 2.0%2021/22 Weekly 2.0%
Employer Rates
Below LEL2020/21 Weekly 0.0%2021/22 Weekly 0.0%
Above LEL to ST2020/21 Weekly 0.0%2021/22 Weekly 0.0%
Above the ST2020/21 Weekly 13.8%2021/22 Weekly 13.8%

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. The exemption will be applied to apprentices aged up to 25 from April 2016.

Although no NICs are payable, to protect an employee's entitlement to contributory benefits national Class 1 NICs are deemed to have been paid in respect of earnings between the LEL and the ET.