Lower Earnings Limit 2026/27: when low pay still builds your State Pension
Short answer
In 2026/27 the Lower Earnings Limit is £129 a week (£559 a month, £6,708 a year). If you earn between £129 and £242 a week from one job, you usually pay no employee National Insurance, but contributions are treated as paid and the year can count for State Pension. Below £129 a week you can pay voluntary Class 3. Self-employed profits of £7,105 or more protect the record without paying Class 2.
The 2026/27 thresholds
| Threshold | Weekly | Monthly | Yearly |
|---|---|---|---|
| Lower Earnings Limit (LEL) | £129 | £559 | £6,708 |
| Primary Threshold (employee NI starts) | £242 | £1,048 | £12,570 |
| Upper Earnings Limit | £967 | £4,189 | £50,270 |
For a standard (category A) employee the rate is 0% between the LEL and the Primary Threshold, 8% up to the Upper Earnings Limit and 2% above it (HMRC: Rates and thresholds for employers 2026 to 2027).
The band where you pay nothing but still build entitlement
GOV.UK says you usually do not pay National Insurance, but may still qualify for benefits and the State Pension, if you are an employee earning from £129 to £242 a week from one job. In that band your contributions are “treated as having been paid” to protect your record (GOV.UK: National Insurance).
| Weekly pay from one job (2026/27) | Employee NI paid | Builds State Pension? |
|---|---|---|
| Under £129 | None | No; consider credits or voluntary Class 3 |
| £129 to £242 | None (0%) | Yes, treated as paid |
| Over £242 | 8% on the slice above £242 (category A) | Yes |
“From one job” matters
GOV.UK’s wording is per job. Someone with two jobs paying £100 a week each earns £200 in total, but neither job reaches the £129 LEL on its own. Check your NI record: if a year shows as not full, look for credits first and then consider voluntary Class 3. GOV.UK says employees earning less than £129 a week who are not eligible for credits can pay Class 3 (GOV.UK: Check which National Insurance contributions you can pay).
Self-employed equivalents
| Annual profits (2026/27) | Position |
|---|---|
| Under £7,105 | Nothing to pay; may choose voluntary Class 2 at £3.65 a week |
| £7,105 or more | Class 2 treated as paid; record protected |
| Over £12,570 | Class 4 at 6% up to £50,270 and 2% above |
Voluntary Class 2 for a full year costs £3.65 × 52 = £189.80, compared with £956.80 for Class 3 (GOV.UK: Self-employed National Insurance rates). Only people allowed to pay Class 2 can use the cheaper rate.
Worked examples
- Part-time employee on £150 a week: above £129, so the year counts; no employee NI is deducted because pay is below £242.
- Employee on £120 a week, no credits: below the LEL. Check for Child Benefit or carer credits; otherwise voluntary Class 3 may fill the year.
- Sole trader with £6,500 profit: below £7,105, so the year is not protected automatically; voluntary Class 2 at £189.80 may be possible.
- Sole trader with £9,000 profit: £7,105 or more, so Class 2 is treated as paid; no Class 4 because profit is under £12,570.
Before you pay anything
Check the actual year on your NI record, then the effect on your forecast. Our NI credits guide lists free ways to fill a year.
Frequently asked questions
What is the Lower Earnings Limit for 2026/27?
£129 a week, £559 a month or £6,708 a year.
Do I pay NI on £200 a week?
Not as a standard employee in 2026/27, because £200 is below the £242 Primary Threshold. The year can still count because £200 is above £129.
Can two small jobs be added together?
GOV.UK’s thresholds are described per job. Check your record and credits before relying on combined earnings.
What is the self-employed equivalent?
Profits of £7,105 or more mean Class 2 is treated as paid.
Sources
Official pages checked on 14 November 2026. Figures are for the 2026/27 tax year (6 April 2026 to 5 April 2027) unless stated.