NIM01009 | Class 1 structural overview: the Upper Earnings Limit (‘UEL’) & the annual maximum

Section 5 of the Social Security Contributions and Benefits Act (SSCBA) 1992 and regulations 10,11 & 21 of the Social Security (Contributions) Regulations 2001 (SI 2001 No 1004)

The Upper Earnings Limit (UEL) determines the percentage rate at which primary Class 1 NICs are payable (see NIM01001).

Guidance on the type of primary Class 1 NICs payable on earnings above and below the UEL can be found at NIM01100 onwards.

The weekly UEL is fixed each year. For guidance on how to calculate the UEL for pay intervals of other than one week up to 5 April 2009, see NIM01010, from 6 April 2009 see NIM01206.

There is also an annual maximum amount of primary NICs payable by earners with more than one employment (see NIM37010).

For further guidance on NICs limits, see NIM11000 onwards.