NIM01009 – Class 1 Structural Overview: The Upper Earnings Limit (‘UEL’) & the annual maximum

Section 5, SSCBA 1992 and regulations 10, 11 & 21, SS(C)R 2001

Prior to 6 4 2003, the Upper Earnings Limit (‘UEL’) set the earnings limit above which no primary (see NIM01001) NICs were payable.

From 6 4 2003 the UEL remains in place but now determines which type of primary Class 1 NICs are payable.

Guidance on the type of primary Class 1 NICs payable from 6 4 2003 on earnings above and below the UEL can be found at NIM01100 onwards.

The weekly UEL is fixed each year. For guidance on how to calculate the UEL for pay intervals of other than one week, see NIM01010. There is also an annual maximum amount of primary NICs payable by employees. Please refer to NIM37010 for further information.

For further guidance on NIC limits, see NIM11000 onwards.