NIM01005 – Class 1 Structural Overview: The Lower Earnings Limit (‘LEL’)

Section 5, SSCBA 1992 and regulations 10 & 11, SS(C)R 2001

The Lower Earnings Limit (LEL) is the point at which employees start to build up entitlement to contributory benefits. The LEL is statutorily tied to the rate of the basic State retirement pension. It is fixed each year. For guidance on how to calculate the LEL for pay intervals other than a week, see NIM01010.

For further guidance on NIC limits, see NIM11000 onwards.