National Insurance Earnings Threshold Rises to £6,708 Annually from April 2026
The Lower Earnings Limit for National Insurance has been increased to £6,708 per year (£559 per month) from 6 April 2026, following annual CPI indexation. This affects when employees and self-employed workers start paying contributions.
The Lower Earnings Limit has increased to £6,708 annually (£559 monthly) from 6 April 2026, based on CPI indexation. This threshold is a key figure in the UK National Insurance system, determining when individuals must start making contributions.
The Lower Earnings Limit (LEL) operates alongside other thresholds in the National Insurance system. The following income tax thresholds remain frozen until 2030 – 31. Personal allowance: £12,750, higher-rate: £50,270 and additional-rate: £125,140. However, while income tax thresholds remain frozen, the NI Lower Earnings Limit continues to be uprated annually with inflation, creating different reference points for tax and contributions.
What This Means in Practice
The Lower Earnings Limit applies to both employed and self-employed workers. If your earnings fall below this threshold, you typically don't pay National Insurance and don't build up state pension entitlements. However, the Employer's NI primary, secondary and upper thresholds will remain frozen until 2030 – 31. This includes the already-reduced secondary threshold of £5,000.
As we transition into the 2026/27 tax year (starting 6 April 2026), UK businesses continue to adapt to the transformed payroll reality following significant reforms to National Insurance contributions and thresholds introduced in 2025/26. The main National Insurance changes in 2026 involve adapting to the full-year impact of the 15% employer rate and preparing for the new Lower Earnings Limit in April.
If you're employed earning between £6,708 and £12,570 annually, you're in a band where you pay no income tax but may pay National Insurance contributions, building towards state pension eligibility. Self-employed workers below this threshold may still choose to pay voluntary Class 2 or Class 3 contributions to maintain pension eligibility. As a foreigner establishing work in the UK, understanding these thresholds is critical for both tax and pension planning.
Sources
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