Upper earnings limit

Resource type: Glossary item

Status: Maintained

Jurisdictions: England, Scotland, Wales

An amount set by the government each year for the purposes of calculating National Insurance contributions (NICs) (www.practicallaw.com/8-201-8297) payable by employers and employees. In the 2013/14 tax year, the upper earnings limit (UEL) is set at £797 a week and an employee must pay NICs at rate of 12% of earnings between the primary theshold (www.practicallaw.com/1-205-6589) and the UEL, plus 2% of earnings above the UEL. His employer must pay NICs at rate of 13.8% of the employee's earnings above the primary threshold. See also lower earnings limit (LEL) (www.practicallaw.com/2-205-6579) and upper accrual point (www.practicallaw.com/4-386-4390).

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Resource ID: 2-205-6584
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Practice note: overview

Contracting out of the state second pension: overview Contracting out of the state second pension: overview (http://uk.practicallaw.com/topic5-504-9541)
Pensions in the UK: overview Pensions in the UK: overview (http://uk.practicallaw.com/topic2-235-7983)

Practice note

Pensions Act 2007: summary of key points Pensions Act 2007: summary of key points (http://uk.practicallaw.com/topic8-375-9429)

Glossary

Lower earnings limit Lower earnings limit (http://uk.practicallaw.com/topic2-205-6579)
Primary threshold Primary threshold (http://uk.practicallaw.com/topic1-205-6589)
State second pension (S2P) State second pension (S2P) (http://uk.practicallaw.com/topic1-200-3464)

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