What is the Lower Earnings Limit (LEL) for 2026/27?

Full answer

The Lower Earnings Limit (LEL) is the minimum weekly earnings level at which an employee is treated as having paid National Insurance contributions, even though no actual NI is deducted. For 2026/27 the LEL is GBP125 per week (GBP6,500 per year). It sits below the Primary Threshold (PT) of GBP12,570 per year, which is the level at which employees actually start paying Class 1 NICs at 8%. The LEL matters because it determines benefit entitlement. Employees earning at or above the LEL in a given week are treated as having made a qualifying year of National Insurance contributions, which counts towards their State Pension, Statutory Sick Pay (SSP), Statutory Maternity Pay (SMP), and other contributory benefits -- even though they have not actually paid any NI. Employees earning below the LEL in a given week do not build up an NI qualifying year for that period. For people with multiple low-paid jobs, earnings are assessed per employment, not combined -- so two jobs each paying GBP4,000 per year do not combine to exceed the LEL. For employers, there is a similar concept called the Secondary Threshold (ST) of GBP5,000 per year (GBP96.15/week), above which employer Class 1 NICs at 13.8% are due. The Employment Allowance can offset the first GBP10,500 of employer NI per year for eligible businesses. Understanding the LEL is particularly important for part-time workers, those with irregular income, and carers who want to protect their State Pension entitlement without paying full NI.

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