Class 1 rates and thresholds

Class 1 - Employed and contracted-out - Rates and thresholds

2017/18 Employee (%)2017/18 Employer (%)2018/19 Employee (%)2018/19 Employer (%)
Below Lower Earnings Limit (LEL)2017/18 Employee%2017/18 Employer%2018/19 Employee%2018/19 Employer%
Above LEL to Earnings Threshold (ET)2017/18 Employee%2017/18 Employer%2018/19 Employee%2018/19 Employer%
Above ET to Upper Accruals Point (UAP)2017/18 Employee 10.6%2017/18 Employer 10.0%2018/19 Employee 10.6%2018/19 Employer 10.0%
Above UAP to Upper Earnings Limit (UEL)2017/18 Employee 12.0%2017/18 Employer 13.8%2018/19 Employee 12.0%2018/19 Employer 13.8%
Above UEL2017/18 Employee 2.0%2017/18 Employer 13.8%2018/19 Employee 2.0%2018/19 Employer 13.8%
NIC rebate between LEL and ET2017/18 Employee 1.4%2017/18 Employer 3.4%2018/19 Employee 1.4%2018/19 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