For 2026/27, employees start paying National Insurance on earnings above £242 a week, £1,048 a month or £12,570 a year (the Primary Threshold). Employers start paying at £96 a week or £5,000 a year (the Secondary Threshold). Self-employed people pay Class 4 on profits above £12,570. The employee and self-employed thresholds are tied to the income tax Personal Allowance and are frozen until April 2031.
There is more than one National Insurance threshold
"The NI threshold" usually means the point at which an employee's own contributions start. The system actually has several thresholds, each doing a different job. The employee threshold, the employer threshold and the threshold that earns you State Pension credit are three different numbers. A worker can be below one and above another.
| Threshold (2026/27) | Weekly | Monthly | Annual | What it does |
|---|---|---|---|---|
| Lower Earnings Limit (LEL) | £129 | £559 | £6,708 | Earnings from here count towards State Pension and benefits |
| Primary Threshold (PT) | £242 | £1,048 | £12,570 | Employee starts paying 8% |
| Secondary Threshold (ST) | £96 | £417 | £5,000 | Employer starts paying 15% |
| Upper Earnings Limit (UEL) | £967 | £4,189 | £50,270 | Employee rate drops to 2% |
| Upper Secondary Thresholds (under 21s, apprentices under 25, veterans) | £967 | £4,189 | £50,270 | Employer pays 0% up to here |
| Freeport and investment zone thresholds | £481 | £2,083 | £25,000 | Employer pays 0% up to here for eligible staff |
The only one of these that moved for 2026/27 is the Lower Earnings Limit, which rose from £125 to £129 a week. The rest are the same as in 2025/26. The rates themselves are covered in our guide to Class 1 National Insurance.
The employee threshold: £12,570
The Primary Threshold has matched the income tax Personal Allowance since July 2022. In practice an employee on a single job starts paying income tax and National Insurance at the same point, £12,570 a year. They pay 8% on earnings between £12,570 and £50,270 and 2% above.
The weekly and monthly figures matter more than the annual one, because employee contributions are worked out pay period by pay period, not cumulatively. Someone paid £1,200 in one month and nothing the next pays on the £152 above the monthly threshold in the first month, even though their annual pay is far below £12,570. Company directors are the exception: their contributions are worked out on annual earnings.
The period figures are rounded, so they do not multiply back exactly. £242 a week over 52 weeks is £12,584, and £1,048 a month over 12 months is £12,576, both slightly above the £12,570 annual figure. Payroll software uses the published weekly or monthly threshold for the pay frequency, so small differences against a hand calculation on the annual figure are expected rather than errors.
The threshold also applies job by job. HMRC's guidance describes mandatory contributions for an employee "earning more than £242 per week from one job". That means two separate jobs paying £200 a week each can leave someone paying no employee contributions at all.
The employer threshold: £5,000
Employers pay secondary contributions of 15% on earnings above £96 a week, with no upper limit. This threshold was cut from £175 a week to £96 from 6 April 2025, at the same time as the rate rose from 13.8% to 15%. That is why low-paid and part-time staff now carry an employer cost even where the employee pays nothing.
Three sets of zero-rate thresholds sit above it:
- Under 21s, apprentices under 25 and qualifying veterans. No employer contributions on earnings up to £967 a week (£50,270 a year);
- Freeport and investment zone special tax sites. No employer contributions up to £481 a week (£25,000 a year) for eligible employees;
- Employment Allowance. Not a threshold, but most employers can set up to £10,500 a year against their secondary Class 1 bill. See our guide to the Employment Allowance.
The Lower Earnings Limit and your State Pension
The Lower Earnings Limit is the threshold people miss. An employee earning between £129 and £242 a week pays no National Insurance but is treated as having paid, so each week still builds their record. Below £129 a week from one job, the week does not count unless it is covered by credits or by voluntary Class 3 contributions at £18.40 a week.
That record matters. You need 10 qualifying years to get any new State Pension and 35 for the full rate, which is £241.30 a week for 2026/27. Someone with several small jobs, each below £129 a week, can work full time and still build no qualifying years.
Self-employed thresholds
The self-employed have their own pair of thresholds, based on annual profits:
- Small Profits Threshold, £7,105. With profits at or above this, Class 2 contributions are treated as paid, so you get the State Pension credit without paying. Below it, you can choose to pay voluntary Class 2 at £3.65 a week;
- Lower Profits Limit, £12,570. Class 4 is charged at 6% on profits between £12,570 and £50,270;
- Upper Profits Limit, £50,270. Class 4 drops to 2% above this.
Self-employed people stop paying Class 4 from the 6 April after reaching State Pension age. Employees stop paying Class 1 when they reach it, although the employer keeps paying.
Will the threshold go up?
Not before April 2031. Budget 2025 extended the freeze on the Personal Allowance to 2030/31, and the government confirmed that the Primary Threshold and the Lower Profits Limit stay aligned with it at £12,570. The Upper Earnings Limit, the Upper Profits Limit and the under-21 and apprentice thresholds stay at £50,270 (£967 a week) for the same period. The income tax side is now law, through section 10 of Finance Act 2026. The NIC thresholds are set each year by regulations, so each year's figures should be checked against HMRC's National Insurance rates and allowances.
Acumon's outsourced payroll service applies the right threshold, category letter and earnings period for every employee and director. Our PAYE services team can review whether your workforce qualifies for the zero-rate thresholds and the Employment Allowance.