Primary Threshold
The level of earnings above which employees start paying Class 1 National Insurance contributions, set at £12,570 per year (£242 per week) for 2025/26. Income below the Primary Threshold is exempt from employee NI, though employers' NI begins at a lower Secondary Threshold. The Primary Threshold is aligned with the income tax Personal Allowance, meaning most employees start paying both tax and NI at the same income level.
Related Terms
Class 1 National Insurance
National Insurance contributions paid by employees and employers on earnings above the Primary Threshold.
National Insurance
A system of compulsory contributions paid by employees, employers, and the self-employed that funds state benefits including the State Pension, Statutory Sick Pay, and Maternity Pay.
Upper Earnings Limit
The earnings level above which employees pay a lower rate of Class 1 National Insurance, currently set at £50,270 — aligned with the higher-rate income tax threshold.
PAYE
Pay As You Earn — the system by which employers deduct income tax and National Insurance directly from employees' wages before paying them, and remit the deductions to HMRC on their behalf.
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