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