Employers and Employees NIC Rates and the Health and Social Care Levy
Published / Last Updated on 09/02/2022
We explained in video 1 that a new Health and Social Care levy starts on 6 April 2022 with a 1.25% increase in employers and employees National Insurance Contributions (NIC) on ‘band earnings between the primary threshold (PT) or secondary thresholds (ST) and the UEL upper earnings limit and above, we call this your band earnings.
But from April 2023, National Insurance will return to its current rate. Instead, the extra 1.25% will be collected as a new Health and Social Care Levy. This levy - unlike National Insurance - will also be paid by state pensioners who are still working.
Employee and Employer Class 1 thresholds (based upon weekly earnings)
|
Tax year 2021 to 2022 |
Tax year 2022 to 2023 |
|
|
Weekly Lower Earnings Limit (LEL) |
£120 |
£123 |
|
Weekly Primary Threshold (PT) |
£184 |
£190 |
|
Weekly Secondary Threshold (ST) |
£170 |
£175 |
|
Upper Earnings Limit (UEL) |
£967 |
£967 |
|
Upper Secondary Threshold (UST) for under 21s |
£967 |
£967 |
|
Apprentice Upper Secondary Threshold (AUST) for under 25s |
£967 |
£967 |
|
Veterans’ Upper Secondary Threshold |
£967 |
£967 |
|
Freeport Upper Secondary Threshold |
N/A |
£481 |
|
Employment Allowance (per employer) |
£4,000 per year |
£4,000 per year |
Employees (primary) Class 1 contribution rates are then payable as follows
|
Earnings band |
Tax year 2021 to 2022 |
Tax year 2022 to 2023 |
|
Below Weekly Lower Earnings Limit (LEL) - £123 per week 2022/23 |
N/A |
N/A |
|
Weekly Lower Earnings Limit (LEL) to Weekly Primary Threshold (PT) - £190 per week 2022/23 |
0% |
0% |
|
Weekly Primary Threshold (PT) to Upper Earnings Limit (UEL) – earnings between £190 and £967 per week 2022/23 |
12% |
13.25% |
|
Above Upper Earnings Limit (UEL) weekly earnings above £967 per week |
2% |
3.25% |
Employers (primary) Class 1 contribution rates are then payable as follows
|
Earnings band |
Tax year 2021 to 2022 |
Tax year 2022 to 2023 |
|
Below Weekly Lower Earnings Limit (LEL) - £123 per week 2022/23 |
N/A |
N/A |
|
Weekly Lower Earnings Limit (LEL) to Secondary Tier Earnings Limit (ST) - £175 per week 2022/23 |
0% |
0% |
|
Secondary Tier Earnings Limit (ST) to Upper Earnings Limit (UEL) – earnings between £175 and £967 per week 2022/23 |
12% |
13.25% |
|
Above Upper Earnings Limit (UEL) weekly earnings above £967 per week |
12% |
13.25% |
The 2022/23 NIC rates will revert to 2021/22 rates in 2023 when the separate Health and Social Care Levy tax starts on 6 April 2023.
