Primary Threshold (PT) and Lower Earnings Limit (LEL)

Tax

These are terms relevant for National Insurance contributions.

The point at which you start paying National Insurance contributions is the ‘Primary Threshold’ (PT; set at £9,500 in 2020/21).

However, workers get the benefits of NIC (including State Pension eligibility) from the ‘Lower Earnings Limit’ (LEL; set at £6,240 in 2020/21, to rise in line with inflation).

Changes to these amounts were recently announced in the March 2020 Budget. See also our the spring budget 2020 & your pension blog post.

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