The Primary Threshold (PT) is the point at which an employee actually starts to pay Class 1 National Insurance contributions. For 2026/27 it is £242 per week, £1,048 per month, or £12,570 per year - deliberately aligned with the income-tax personal allowance and frozen at the same cash level since April 2022.
Up to the PT, employees pay no NI but still build State Pension entitlement once they cross the LEL. From the PT up to the Upper Earnings Limit, employees pay the main rate of Class 1 NIC (the rate cut to 8% from 6 January 2024 and remains 8% in 2026/27). Above the UEL, the rate falls to 2% - the additional rate.
Worked example: Carlos earns £40,000 per year. His weekly pay of about £770 sits comfortably above the PT (£242) but below the UEL (£967 weekly). NI for the year is calculated as 8% of (£40,000 − £12,570) = 8% of £27,430 = £2,194. If he received a £20,000 bonus in March pushing some weeks above the UEL, only that excess would be charged at 2%. The PT is the threshold most employees see referenced on their payslip software when checking 'is my NI right?', because it determines when the 8% rate kicks in.
External references
Not sure your deductions are correct?
Related guides
Army Pay Scales 2026/27: Other Ranks, Officers, X-Factor
How British Army pay works in 2026/27 - Other Ranks Private to WO1, Officers 2Lt to Colonel, the 14.5% X-factor, Pay Spine, specialist supplements.
Read guideNHS Pay Bands 2026/27: Agenda for Change Salaries Explained
Full NHS Agenda for Change pay scales for 2026/27 — every band 2 to 9, London weighting, the NHS pension, and a worked Band 5 nurse payslip example.
Read guide