What is the national insurance contributions threshold?

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## National Insurance Contributions Thresholds

"NIC threshold" is not a single figure — there are several distinct thresholds depending on the class of contribution and the contributor. Below is a comprehensive summary of the current thresholds, drawing on the most up-to-date legislation and HMRC guidance available.

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## What the law says

### Class 1 (Employees & Employers) — 2025–26

The key thresholds for Class 1 NICs are set in regulation 10 of the Social Security (Contributions) Regulations 2001 (SI 2001/1004), as amended annually. For 2025–26, the following apply:

| Threshold | Weekly | Annual |
|---|---|---|
| **Lower Earnings Limit (LEL)** | £125 | £6,500 |
| **Primary Threshold (PT)** — employee contributions start | £242 | £12,570 |
| **Secondary Threshold (ST)** — employer contributions start | £96 | £5,000 |
| **Upper Earnings Limit (UEL)** | £967 | £50,270 |

- The **Lower Earnings Limit** was raised from £123 to **£125 per week** by the 2025 Regulations.
- The **Secondary Threshold** was reduced from £175 to **£96 per week** (£5,000 per year) by the National Insurance Contributions (Secondary Class 1 Contributions) Act 2025, which amended regulation 10(d) of the 2001 Regulations.
- The same Act also raised the **rate of secondary (employer) Class 1 contributions** from 13.8% to **15%**, effective 6 April 2025.

### Class 2 (Self-Employed) — 2025–26
- **Small Profits Threshold**: **£6,845** per year (raised from £6,725).
- **Weekly rate**: **£3.50** (raised from £3.45).

### Class 3 (Voluntary) — 2025–26
- **Weekly rate**: **£17.75** (raised from £17.45).

### Class 4 (Self-Employed Profits) — 2025–26
The Upper Earnings Limit for Class 4 remains aligned with the Class 1 UEL at **£50,270**, and the Primary Threshold of **£12,570** applies as the lower profits limit.

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### Looking ahead: 2026–27
The Social Security (Contributions) (Rates, Limits and Thresholds Amendments, National Insurance Funds Payments and Extension of Veteran's Relief) Regulations 2026 (in force 6 April 2026) will set:
- **Lower Earnings Limit**: £129 per week
- **Class 2 Small Profits Threshold**: £7,105
- **Class 2 weekly rate**: £3.65
- **Class 3 weekly rate**: £18.40

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## HMRC guidance / practice

HMRC's National Insurance Manual confirms the practical operation of these thresholds:

- **Employees do not pay** primary Class 1 NICs on earnings up to the Primary Threshold. However, once earnings reach the LEL, employee contributions are **treated as having been paid** on earnings from the LEL up to the Primary Threshold — protecting benefit entitlement for those earning above the LEL who no longer pay NICs.
- **Employers do not pay** secondary Class 1 NICs on earnings up to the Secondary Threshold.

HMRC guidance confirms the 2025–26 rates and limits used in practice as follows:

| | Weekly | Annual |
|---|---|---|
| LEL | £125 | £6,500 |
| UEL | £967 | £50,270 |
| Secondary Threshold (ST) | £96 | £5,000 |
| Primary Threshold (PT) | £242 | £12,570 |
| Primary Main Rate | 8% | |
| Additional Rate (above UEL) | 2% | |
| Secondary Rate | 15% | |

The **Employment Allowance** was also increased from £5,000 to **£10,500** from 6 April 2025, and the previous £100,000 secondary Class 1 liability eligibility cap was removed.

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Threshold	Weekly	Annual
Lower Earnings Limit (LEL)	£125	£6,500
Primary Threshold (PT) — employee contributions start	£242	£12,570
Secondary Threshold (ST) — employer contributions start	£96	£5,000
Upper Earnings Limit (UEL)	£967	£50,270