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Lower earnings limit

Whilst employed earners actually start paying National Insurance contributions once their earnings exceed the primary earnings threshold set for that tax year, if their earnings reach the annual lower earnings limit they are treated as if they had paid contributions at 0% on any earnings they have up to the primary earnings threshold. Earnings on which contributions are paid at that zero rate count towards a person's entitlement to contributory benefits, such as Jobseeker's Allowance or Incapacity Benefit. This protects the National Insurance records of low paid earners.

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