NIM01007 - Class 1 Structural Overview: Notional primary

Section 6A of theSocial Security Contributions and Benefits Act 1992 and regulations 10 & 11 of the Social Security (Contributions) Regulations 2001 (SI 2001 No 1004)

Employees do not pay primary Class 1 NICs on earnings up to the Primary Threshold (see NIM01008). However, once earnings reach the Lower Earnings Limit (LEL, see NIM01005) employee contributions are treated as having been paid on earnings from the LEL up to and including the Primary Threshold. This protects the benefit entitlement position of those earning above the LEL who have been removed from paying NICs following the introduction of the Primary Threshold.

Employers do not pay secondary Class 1 NICs on earnings up to the Secondary Threshold.

For further guidance on NICs thresholds and limits, see NIM11000 onwards. If aggregation of earnings is involved (NIM01004), see also NIM10000 onwards.