Qualifying earnings are all an employee’s earnings between a lower and upper limit set by the government and reviewed each year.
For the 2023-2024 tax year:
- the lower limit is £6,240
- the upper limit is £50,270
- the maximum qualifying earnings is £44,030 (£50,270-£6,240)
Qualifying earnings thresholds
Pay periods | Lower level | Upper level |
Weekly | £120 | £967 |
Fortnightly | £240 | £1,934 |
Four-weekly | £480 | £3,867 |
Monthly | £520 | £4,189 |
An example
2023-2024 earnings: £20,000 salary + £5,000 bonus
Qualifying earnings: £25,000-£6,240 = £18,760.