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UK Payslip Glossary

Every term you might see on a UK payslip, explained in plain English. 97 entries, updated for the 2026/27 tax year.

C

Class 1A NICNational Insurance
An employer-only NI charge on most taxable benefits in kind, paid annually with the P11D(b) at 15% for 2026/27. Full definition

E

Employer NINational Insurance
Employer-side NI of 15% on pay above £5,000; doesn't reduce take-home pay. Full definition
Employment AllowanceNational Insurance
A £10,500 annual reduction to small employers' Class 1 secondary NIC bill from April 2025. Full definition

L

Lower Earnings Limit (LEL)National Insurance
The earnings floor at which employees start to build up qualifying years for the State Pension, even though no NI is yet payable. Full definition

N

National Insurance (NI)National Insurance
Mandatory contributions funding the State Pension and other state benefits. Full definition
NI Category LetterNational Insurance
The single-letter code that sets your NI rate (A, B, C, H, M, V, Z and others). Full definition

P

Primary Threshold (PT)National Insurance
The earnings level at which an employee starts paying Class 1 NIC; £242 per week for 2026/27. Full definition

S

Secondary Threshold (ST)National Insurance
The earnings level at which an employer starts paying employer's NIC; £5,000 per year for 2026/27. Full definition

U

Upper Earnings Limit (UEL)National Insurance
The earnings ceiling above which employee NI drops from the main rate (8%) to the additional rate (2%); £967 per week for 2026/27. Full definition