Class 1 rates and thresholds

Class 1 - Employed and contracted-out - Rates and thresholds

2021/22 Employee (%) 2021/22 Employer (%) 2022/23 Employee (%) 2022/23 Employer (%)
Below Lower Earnings Limit (LEL)2021/22 Employee%2021/22 Employer%2022/23 Employee%2022/23 Employer%
Above LEL to Earnings Threshold (ET)2021/22 Employee%2021/22 Employer%2022/23 Employee%2022/23 Employer%
Above ET to Upper Accruals Point (UAP)2021/22 Employee 10.60%2021/22 Employer 10.00%2022/23 Employee 10.60%2022/23 Employer 10.00%
Above UAP to Upper Earnings Limit (UEL)2021/22 Employee 12.00%2021/22 Employer 13.80%2022/23 Employee 13.25%2022/23 Employer 15.05%
Above UEL2021/22 Employee 2.00%2021/22 Employer 13.80%2022/23 Employee 3.25%2022/23 Employer 15.05%
NIC rebate between LEL and ET2021/22 Employee 1.40%2021/22 Employer 3.40%2022/23 Employee 1.40%2022/23 Employer 3.40%

As a result of the proposed introduction of the single-tier State Pension, contracting out via a defined benefit pension scheme will no longer be possible from 6 April 2016.

From 6 April 2015 employers will no longer be required to pay Class 1 NICs on earnings up to the UEL for any employee aged under 21