Class 1 rates and thresholds

Class 1 Rates and thresholds

2019/20 Weekly 2020/21 Weekly
Earnings Threshold
Lower Earnings Limit (LEL)2019/20 Weekly£ 1182020/21 Weekly£ 120
Primary Threshold (PT)2019/20 Weekly£ 1662020/21 Weekly£ 183
Secondary Threshold (ST)2019/20 Weekly£ 1662020/21 Weekly£ 183
Upper Accrual Point (UAP)2019/20 Weekly£ 7702020/21 Weekly£ 770
Upper Earnings Limit (UEL)2019/20 Weekly£ 9622020/21 Weekly£ 962
Employee Rates
Below LEL2019/20 Weekly 0.0%2020/21 Weekly 0.0%
Above LEL to PT2019/20 Weekly 0.0%2020/21 Weekly 0.0%
Above the PT to the UEL2019/20 Weekly 12.0%2020/21 Weekly 12.0%
Above UEL2019/20 Weekly 2.0%2020/21 Weekly 2.0%
Employer Rates
Below LEL2019/20 Weekly 0.0%2020/21 Weekly 0.0%
Above LEL to ST2019/20 Weekly 0.0%2020/21 Weekly 0.0%
Above the ST2019/20 Weekly 13.8%2020/21 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.