Introduction to Income Tax and NICs National Insurance contributions
Eligible employers pay a specific rate of NICs on earnings between the Secondary Threshold (ST) and the FUST for eligible employees for up to three years. The specific rate for 2023-24 is 0%.
4.7.8 Upper Earnings Limit (UEL)
The Upper Earnings Limit (UEL) is prescribed each year.
An employee pays NICs on earnings up to this amount at the appropriate rates and then pays NICs at 2% (for 2023-24) on all earnings above this level.
The rate that the employer pays is unaffected by the UEL; it is the same rate on earnings immediately below UEL as it is on earnings above this level.
4.7.9 Limits, thresholds and rates
Limits and thresholds
2023-24 £
Earnings limits and thresholds
Lower Earnings Limit (LEL)
Weekly
123
Monthly
533
Yearly
6,396
Primary Threshold (PT)
Weekly
242
Monthly
1,048
Yearly
12,570
Secondary Threshold (ST)
Weekly
175
Monthly
758
Yearly
9,100
Freeport Upper Secondary Threshold (FUST)
Weekly
481
Monthly
2,083
Yearly
25,000
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