UK: New National Insurance Thresholds

The UK Government have announced that effective from April 2021-2022 National Insurance (NI) thresholds limits will be:

  • Lower earnings limit – £520 per month or £6,240 per year (no change)
  • Primary threshold – £797 per month or £9,568 per year (increased from £792)
  • Secondary threshold – £737per month or £8,840 per year (increased from £732)
  • Upper earnings limit – £4,189 per month or £50,270 per year (increased from £4,167)

Effective with those changes:

  • Employees will benefit from the primary threshold of £797 per month, meaning that the first £797 per month of the salary is exempt from the Employee NI contribution.
  • Employers will pay NI from the secondary threshold of £737 per month; meaning that the first £737 per month of the salary is exempt from the Employer NI contribution.

*Note that the actual rates of NI contribution will remain unchanged for both Employees (2-12%) and Employers (13.8%).

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