Definitions for "Lower Earnings Limit"
The minimum amount that must be earned in any period before National Insurance contributions are payable.
If you earn less than this limit (roughly the same as the basic State pension), you do not have to pay National Insurance Contributions. The upper earnings limit is roughly seven times as much and you pay no National Insurance Contributions on any earnings above it (although your employer does). The earnings between the two limits are used to work out your pension from the State Earnings-Related Pension Scheme and your National Insurance Contributions.
The level of income at which employees start to pay Class 1 National Insurance contributions.