Regulation 19 Calculation of net earnings of employed earnersI1

England, Wales and Scotland

(1)

For the purposes of regulation 13 (average weekly earnings of employed earners), the earnings of a claimant derived or likely to be derived from employment as an employed earner to be taken into account shall, subject to paragraph (2), be his net earnings.

(2)

There shall be disregarded from a claimant’s net earnings, any sum, where applicable, specified in F1paragraphs 1 to 12 of Schedule 2.

(3)

For the purposes of paragraph (1) net earnings shall, except where paragraph (4) applies, be calculated by taking into account the gross earnings of the claimant from that employment over the assessment period, less–

(a)

any amount deducted from those earnings by way of–

(i)

income tax,

(ii)

primary Class 1 contributions under the Social Security Act^f1; and

(b)

one-half of any sum paid by the claimant by way of a contribution towards an occupational or personal pension scheme.

(4)

Where the earnings of a claimant are estimated under paragraph (2) of regulation 13 (average weekly earnings of employed earners), his net earnings shall be calculated by taking into account those earnings over the assessment period, less–

(a)

an amount in respect of income tax equivalent to an amount calculated by applying to those earnings F2the lower rate or, as the case may be, the lower rate and the basic rate of tax in the year of assessment in which the claim was made less only the personal relief to which the claimant is entitled under sections 257(1), (6) and (7) and 259(1)(a) and (2) of the Income and Corporation Taxes Act 1988 (personal relief)^f2 as is appropriate to his circumstances but, if the assessment period is less than a year, F3the earnings to which the lower rate and, if appropriate, the basic rate of tax is to be applied and the amount of the personal relief deductible under this sub-paragraph shall be calculated on a pro-rata basis;

(b)

an amount in respect of primary Class 1 contributions payable under the Social Security Act in respect of those earnings; and

(c)

one-half of any sum payable by the claimant by way of a contribution towards an occupational or personal pensions scheme.

Annotations

Textual amendments

F1: Words in reg. 19(2) substituted (1.4.1991) by The Community Charge Benefits (General) Amendment Regulations 1991 (S.I. 1991/234), regs. 1(1)(b), 2
F2: Words in reg. 19(4)(a) substituted (5.10.1992) by The Housing Benefit and Community Charge Benefits (Miscellaneous Amendments) (No.2) Regulations 1992 (S.I. 1992/2148), regs. 1(1), 16(a)
F3: Words in reg. 19(4)(a) inserted (5.10.1992) by The Housing Benefit and Community Charge Benefits (Miscellaneous Amendments) (No.2) Regulations 1992 (S.I. 1992/2148), regs. 1(1), 16(b)

Commencement

I1: Reg. 19 in force at 1.4.1990, see reg. 1

Footnotes

f1: See sections 1(2) and 4 of the Social Security Act 1975 (c. 14); section 4 was amended by the Social Security Pensions Act 1975 (c. 60), Schedule 4 paragraph 36(a), the Education (School-Leaving Dates) Act 1976 (c. 5), section 2(4), the Social Security Act 1979 (c. 18), section 14(1), the Social Security and Housing Benefits Act 1982 (c. 24), Schedule 5, the Social Security Act 1985 (c. 53), sections 7(1) and (2) and 8(1) and the Social Security Act 1986 (c. 50), section 74(1)(a) and (2) and Schedule 10, paragraph 104 and S.I. 1989/26 article 2.
f2: 1988 c. 1.