National Insurance contributions

Class 1 Rates and thresholds

  2016/17 2016/17 2016/17 2017/18 2017/18 2017/18
Earnings Thresholds Weekly Monthly Annual Weekly Monthly Annual
Lower Earnings Limit (LEL) £112 £486 £5,824 £113 £490 £5,880
Primary Threshold(PT) £155 £672 £8,060 £157 £681 £8,164
Secondary Threshold(ST) £156 £676 £8,112 £157 £681 £8,164
Upper Earnings Limit(UEL) £827 £3,532 £43,000 £866 £3,750 £45,000
Employee rates     Employee     Employee
Below LEL     Nil     Nil
Above LEL to PT     0%     0%
Above the PT to the UEL     12.0%     12.0%
Above UEL     2.0%     2.0%
Employer rates     Employer     Employer
Below LEL     Nil     Nil
Above LEL to ST     0%     0%
Above the ST     13.8%     13.8%

From 6 April 2015 employers are no longer be required to pay Class 1 NICs on earnings up to the UEL for any employee aged under 21. The exemption applies 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.

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