National Insurance Employee Primary Contributions

From 6th April 2019 to 5th April 2020

National Insurance Primary Contributions are deductions suffered by the employee when they reach a certain level of gross pay

The percentage deductible depends on the employee’s gross earnings, their age, their employment status and the national insurance letter allocated to the employee by HMRC.

The most common letters used to calculate national insurance are A, C, J and M
NICs letterACHJM
Earnings at or above LEL up to and including the PT00000
Earnings above PT up to and including the UEL12012212
Balance of earnings above the UEL20222
Key: (weekly)

LEL (lower earnings threshold) £118 per week

PT (primary threshold) £166 per week

UEL (upper earnings limit) £962 per week

It is beneficial for the employee to earn between £118 (LEL) and £165 (PT) a week

Earning between the (LEL) and the (PT) allows the employee to gain a credit towards their national insurance stamp and makes them eligible for most statutory payments such as statutory sick pay.  Gross earnings between these two thresholds are not subject to national insurance for either the employee or the employer.

National Insurance deductions should NOT be made on earnings below the lower earnings limit