National Insurance is not charged at one flat rate. Four thresholds, set each April under the Social Security (Contributions) Regulations 2001[2], decide where contributions start and stop. Two apply to you, two apply to your employer. Knowing them is how you check the NI line on your payslip is right, because a wrong threshold quietly over- or under-deducts every payday.
What are the four NI thresholds in 2026/27?
| Threshold | Weekly | Annual | What it does |
|---|---|---|---|
| Lower Earnings Limit (LEL) | £129 | £6,708 | Earn above this and the year counts toward State Pension, even at 0% NI |
| Primary Threshold (PT) | £242 | £12,570 | Employee NI starts here, at 8% |
| Secondary Threshold (ST) | £96 | £5,000 | Employer NI starts here, at 15% |
| Upper Earnings Limit (UEL) | £967 | £50,270 | Employee NI drops from 8% to 2% above this |
Which thresholds affect my take-home pay?
Only the two employee thresholds. You pay nothing below the Primary Threshold of £12,570 a year[1], 8% between the PT and the Upper Earnings Limit, then 2% above £50,270. The Secondary Threshold of £5,000 is your employer's starting point for their 15% contribution; it never touches your net pay, though a lower threshold raises the cost of employing you.
Why does the Lower Earnings Limit matter if I pay no NI?
Because earning above the LEL, but below the Primary Threshold, still earns you a qualifying year toward the State Pension without costing you a penny. Thirty-five qualifying years[4] earns the full new State Pension. A part-time year above £6,708 protects your record; a year below it may leave a gap you later have to fill with voluntary contributions.
Where do these thresholds appear on my payslip?
Indirectly, through the NI deduction figure itself. Your payslip will not name the PT or UEL, but the amount deducted should equal 8% of pay between the monthly equivalents (£1,048 and £4,189) plus 2% above. If your deduction does not reconcile to those bands, check your NI category letter, as the wrong letter applies the wrong threshold set.
Primary sources
- 1.Rates and thresholds for employers 2026 to 2027 — gov.uk — Authoritative 2026/27 LEL, PT, ST and UEL figures, weekly and annual
- 2.The Social Security (Contributions) Regulations 2001 — legislation.gov.uk — SI 2001/1004 — the thresholds and contribution mechanics
- 3.Social Security Contributions and Benefits Act 1992 — legislation.gov.uk — Primary legislation underpinning Class 1 National Insurance
- 4.The new State Pension: eligibility — gov.uk — How earning above the LEL builds qualifying years
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