Class 1 rates and thresholds

Class 1 Rates and thresholds

2021/22 Weekly 2022/23 Weekly
Earnings Threshold
Lower Earnings Limit (LEL)2021/22 Weekly£ 1202022/23 Weekly£ 123
Primary Threshold (PT)2021/22 Weekly£ 1842022/23 Weekly£ 190
Secondary Threshold (ST)2021/22 Weekly£ 1702022/23 Weekly£ 175
Upper Accrual Point (UAP)2021/22 Weekly£ 9672022/23 Weekly£ 967
Upper Earnings Limit (UEL)2021/22 Weekly£ 9672022/23 Weekly£ 967
Employee Rates
Below LEL2021/22 Weekly 0.00%2022/23 Weekly 0.00%
Above LEL to PT2021/22 Weekly 0.00%2022/23 Weekly 0.00%
Above the PT to the UEL2021/22 Weekly 12.00%2022/23 Weekly 13.25%
Above UEL2021/22 Weekly 2.00%2022/23 Weekly 3.25%
Employer Rates
Below LEL2021/22 Weekly 0.00%2022/23 Weekly 0.00%
Above LEL to ST2021/22 Weekly 0.00%2022/23 Weekly 0.00%
Above the ST2021/22 Weekly 13.80%2022/23 Weekly 15.05%

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.

In 2022/23 the Primary Threshold will fall in line with the Income Tax allowance from 6th July. The weekly/monthly/annual threshold will change from £190, £823, £9,880 to £242, £1,048, £12,570 respectively.