National Insurance supports the State Pension and other benefits. The Lower Earnings Limit (LEL) is the minimum earnings level that counts towards a National Insurance record. It helps protect your record even when you pay no employee National Insurance.
If your earnings reach the LEL, HMRC can treat National Insurance Contributions as paid. As a result, those earnings can help you build a qualifying year for your State Pension.
However, the LEL does not trigger a deduction from your wages. A higher figure, called the Primary Threshold, determines when most employees start paying National Insurance.
The Lower Earnings Limit for 2026/27
The Lower Earnings Limit increased on 6 April 2026. The figures for the current and previous tax years are as follows.
| Tax Year | Weekly | Monthly | Annual |
|---|---|---|---|
| 2025/26 | £125 | £542 | £6,500 |
| 2026/27 | £129 | £559 | £6,708 |
Consequently, employees generally need earnings of at least £129 per week to build an earnings-based National Insurance record. The equivalent monthly limit is £559. However, a full qualifying year depends on your earnings and credits across the tax year.
How the Lower Earnings Limit Affects Your Pay
The Lower Earnings Limit and Primary Threshold serve different purposes. For 2026/27, the main weekly thresholds are as follows.
| National Insurance Threshold | Weekly Amount |
|---|---|
| Lower Earnings Limit | £129 |
| Primary Threshold | £242 |
| Secondary Threshold | £96 |
| Upper Earnings Limit | £967 |
Each threshold plays a different role:
- The Lower Earnings Limit helps workers build their National Insurance record
- The Primary Threshold determines when employee National Insurance deductions begin
Most employees pay 8% National Insurance on earnings above £242 and up to £967 per week. They then pay 2% on earnings above £967.
What Employers Must Do
Employers must record wages accurately and use suitable payroll software. They should also use the correct National Insurance category and submit payroll information through PAYE. Moreover, employers need to understand their own National Insurance costs.
For 2026/27, most employers pay 15% on earnings above the £96 weekly Secondary Threshold. These rules began in April 2025. Additionally, the annual threshold fell from £9,100 to £5,000. The employer rate also increased from 13.8% to 15%.
Read more: Payroll Made Simple
What It Means for Sick Pay
Previously, employees generally needed earnings at or above the Lower Earnings Limit to qualify for Statutory Sick Pay (SSP).
Now, as of 6 April 2026, eligible employees can receive SSP regardless of their earnings. Furthermore, payments start from the first full day of sickness absence. For 2026/27, employers calculate SSP at £123.25 or 80% of average weekly earnings. They use whichever amount is lower.
The Lower Earnings Limit and Your State Pension
Your National Insurance records helps determine your State Pension. You need at least 10 qualifying years to receive any new State Pension. People who started their National Insurance record after April 2016 usually need 35 full years for the full amount.
However, different calculations can apply to people with earlier contributions. Therefore, the Lower Earnings Limit matters particularly to part-time employees and people with modest wages. It also helps workers who return after career breaks.
However, reaching £129 in one week does not guarantee a whole qualifying year. Your earnings across the tax year must build enough entitlement. Furthermore, HMRC assesses earnings from separate employers individually.
For example: Two jobs below the LEL may not count, even when their combined pay exceeds £129 weekly.
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This article is for general informational purposes only and does not constitute legal or financial advice. While we aim to keep our content up to date and accurate, UK tax laws and regulations are subject to change. Please speak to an accountant or tax professional for advice tailored to your individual circumstances. Pi Accountancy accepts no responsibility for any issues arising from reliance on the information provided.