Glossary · UK
What is UEL (Upper Earnings Limit)?
The earnings ceiling above which employee NI drops from 8% to 2% — £50,270/year in 2026/27.
Full Definition
The Upper Earnings Limit (UEL) is the annual earnings level above which the employee National Insurance rate falls from the main 8% rate to the reduced 2% rate. For 2026/27 it is £50,270 per year (£967 per week). This aligns with the Income Tax higher-rate threshold, so for an rUK employee passing £50,270 the combined marginal rate drops from 48% (40% IT + 8% NI) to 42% (40% IT + 2% NI). Scotland's Income Tax higher rate of 42% bites at £43,663, but NI remains UK-wide so Scottish taxpayers still pay 8% employee NI up to £50,270. Employer NI has no UEL — it continues at 15% on all earnings above the Secondary Threshold (£9,100/year from April 2025) with no upper ceiling.