Lower Earnings Limit (LEL)

The Lower Earnings Limit (LEL) is the smallest of the National Insurance thresholds. For 2026/27 it sits at £125 per week (£6,500 per year). Earnings below the LEL do not count for NI at all. Earnings between the LEL and the Primary Threshold are treated as 'NI credits' — the employee pays no contributions, but the period still counts towards their entitlement to contributory state benefits, including a qualifying year for the new State Pension.

The LEL is also the threshold below which Statutory Sick Pay, Statutory Maternity Pay and other statutory family payments are not available — a key reason it matters for low-earning and part-time workers. It is set by the Treasury at Budget time and changes each tax year.

Worked example: Aaliyah works 14 hours a week earning £140. That is above the LEL (£125) but below the Primary Threshold (£242 in 2026/27 — frozen at the same cash level since April 2022). She pays no employee NI, but each week of work counts towards the 35 qualifying years she needs for the full new State Pension. If her hours dropped to £110, she would fall below the LEL and that week would not count for State Pension purposes. The LEL is therefore the most important threshold for anyone in low-paid or variable-hours work who cares about long-term pension entitlement.