Primary Threshold
The level of earnings above which employees start paying Class 1 National Insurance contributions, set at £12,570 per year (£242 per week) for 2026/27. Income below the Primary Threshold is exempt from employee NI, though employers' NI begins at a lower Secondary Threshold. The Primary Threshold is aligned with the income tax Personal Allowance, meaning most employees start paying both tax and NI at the same income level.
How it works
The Primary Threshold is set as a weekly figure, £242 per week, so it applies consistently regardless of how often you're paid, and payroll software converts it to the correct amount for weekly, monthly, or other pay frequencies automatically.
Unlike income tax, National Insurance thresholds and rates are the same across the whole UK, including Scotland, so the Primary Threshold doesn't shift depending on which nation's income tax bands apply to you.
The threshold is currently aligned with the income tax Personal Allowance, but the two are set and administered independently, so they are not guaranteed to stay numerically identical in future tax years.
Example: NI on weekly earnings above the threshold
Someone earning £500 in a week has £500 − £242 = £258 above the Primary Threshold.
Employee Class 1 NI is charged at 8% on this portion: £258 × 8% = £20.64 for that week.
Frequently asked questions
Is the Primary Threshold the same as the Personal Allowance?
They're currently numerically aligned at £12,570, but one triggers income tax and the other triggers employee National Insurance, and they are set independently so could diverge in future years.
Do employers use the same threshold to calculate their own NI?
No, employers pay Class 1 NI from their own Secondary Threshold, which is set separately from the employee Primary Threshold and can be a different figure.
What happens if I earn below the Primary Threshold?
You pay no employee National Insurance on earnings below the threshold, while your employer's own NI liability is assessed independently against their own threshold.
Related Terms
Class 1 National Insurance
National Insurance contributions paid by employees and employers on earnings above the Primary Threshold.
National Insurance
A system of compulsory contributions paid by employees, employers, and the self-employed that funds state benefits including the State Pension, Statutory Sick Pay, and Maternity Pay.
Upper Earnings Limit
The earnings level above which employees pay a lower rate of Class 1 National Insurance, currently set at £50,270 — aligned with the higher-rate income tax threshold.
PAYE
Pay As You Earn — the system by which employers deduct income tax and National Insurance directly from employees' wages before paying them, and remit the deductions to HMRC on their behalf.
Try the calculator
Use our free tool to see how primary threshold affects your tax.