Regulation 16 Normal weekly earnings of employed earnersI1
England, Wales and Scotland
Subject to regulation 19, where the claimant’s income consists of earnings from employment as an employed earner, his normal weekly earnings shall be determined F1by taking account of his earnings from that employment which are received in the assessment period relevant to his case, whether the amount so received was earned in respect of that period or not, and in accordance with the following provisions of this regulation.
Subject to paragraphs (7), (8A), (8B) and (8C), where at the date of claim there is a trade dispute or period of short-time working at the claimant’s place of employment, F4or where at the date of claim the claimant is absent from work by reason of jury service, then his normal weekly earnings shall be determined by taking account of his earnings over the 5 weeks immediately preceding the start of that dispute or period of short-time working F5or jury service.
Subject to paragraphs (7), (8A), (8B) and (8C), where the claimant is paid monthly, his normal weekly earnings shall be determined by taking account of his earnings—
over a period of 2 months immediately preceding the week in which the date of claim falls; or
where, at the date of claim, there is a trade dispute or a period of short-time working at his place of employment, F6or where at the date of claim the claimant is absent from work by reason of jury service, over a period of 2 months immediately preceding the date of the start of that dispute or period of short-time working F7or jury service.
Subject to paragraphs (7), (8A), (8B) and (8C), whether or not paragraph (2), (3) or (4) applies, where a claimant’s earnings fluctuate or are not likely to represent his weekly earnings, his normal weekly earnings shall be determined by taking account of his weekly earnings over such other period preceding the week in which the date of claim falls as may, in any particular case, enable his normal weekly earnings to be determined more accurately.
Where a claimant’s earnings include a bonus or commission which is paid within 52 weeks preceding the week in which the date of claim falls, and the bonus or commission is paid separately or relates to a period longer than the period relating to the other earnings with which it is paid, his normal weekly earnings shall be treated as including an amount calculated in accordance with regulation 23 (calculation of bonus or commission).
Where at the date of claim—
the claimant—
has been in his employment; or
after a continuous period of interruption exceeding 13 weeks, has resumed his employment; or
has changed the number of hours for which he is contracted to work; and
the period of his employment or the period since he resumed his employment or the period since the change in the number of hours took place, as the case may be, F8is less than the assessment period in paragraphs (2) to (5) appropriate in his case,
paragraph (8).
In a case to which this paragraph applies, F9the Board shall require the claimant’s employer to furnish an estimate of the claimant’s average likely earnings for the period for which he will normally be paid and the claimant’s normal weekly earnings shall be determined by taking account of that estimate.
Where—
the claimant is entitled at the date of the claim to statutory maternity pay and is or will be receiving extra statutory maternity pay from her employer, and
the next payment from her employer following the date of the claim is a payment which will include statutory maternity pay paid to her for a full pay period at the lower rate only,
the Board shall require the claimant to furnish them with an estimate of her likely earnings and statutory maternity pay to be contained in that payment, and her normal weekly earnings shall be determined by taking account of that estimate.
Where—
the claimant is entitled at the date of the claim to statutory maternity pay and is or will be receiving extra statutory maternity pay from her employer,
the claim is made during a maternity pay period and at a time when less than half of that maternity pay period has expired, and
in consequence the next payment from her employer following the date of the claim is a payment which will not include statutory maternity pay paid to her for a full pay period at the lower rate only,
the Board shall require the claimant to furnish them with an estimate of her likely earnings and statutory maternity pay to be contained in the first future payment from her employer in which statutory maternity pay will be paid to her at the lower rate only, and her normal weekly earnings shall be determined by taking account of that estimate.
Where—
the claimant is entitled at the date of the claim to statutory maternity pay and is or will be receiving extra statutory maternity pay from her employer,
the claim is made during a maternity pay period and at a time when more than half of that maternity pay period has expired, and
in consequence the next payment from her employer following the date of the claim is a payment which will not include statutory maternity pay paid to her for a full pay period at the lower rate only,
the Board shall require the claimant to furnish them with details of her earnings and statutory maternity pay contained in the payment from her employer immediately preceding the date of the claim, and her normal weekly earnings shall be determined accordingly.
For the purposes of this regulation—
the claimant’s earnings shall be calculated in accordance with Chapter III of this Part;
“a period of short-time working” means a continuous period not exceeding 13 weeks during which the claimant is not required by his employer to be available to work the full number of hours normal in his case under the terms of his employment.
Annotations
Textual amendments
- F1
Words in reg. 16(1) substituted (7.1.1997) by The Disability Working Allowance and Family Credit (General) Amendment Regulations 1996 (S.I. 1996/3137), regs. 1, 2(3)(a)
- F2
Words in reg. 16(2)-(5) substituted (with effect in accordance with reg. 1(4) of the amending S.I.) by The Tax Credits (Miscellaneous Amendments No. 3) Regulations 2001 (S.I. 2001/892), regs. 1(2), 5(2)
- F3
Words in reg. 16(2)-(5), (8) substituted (7.1.1997) by The Disability Working Allowance and Family Credit (General) Amendment Regulations 1996 (S.I. 1996/3137), regs. 1, 2(3)(b)
- F4
Words in reg. 16(3) inserted (with effect in accordance with reg. 5(4) of the amending S.I.) by The Tax Credits Schemes (Miscellaneous Amendments No. 4) Regulations 2000 (S.I. 2000/2978), regs. 1(1), 5(1)(2)(a)
- F5
Words in reg. 16(3) added (with effect in accordance with reg. 5(4) of the amending S.I.) by The Tax Credits Schemes (Miscellaneous Amendments No. 4) Regulations 2000 (S.I. 2000/2978), regs. 1(1), 5(1)(2)(b)
- F6
Words in reg. 16(4)(b) inserted (with effect in accordance with reg. 5(4) of the amending S.I.) by The Tax Credits Schemes (Miscellaneous Amendments No. 4) Regulations 2000 (S.I. 2000/2978), regs. 1(1), 5(1)(2)(a)
- F7
Words in reg. 16(4)(b) added (with effect in accordance with reg. 5(4) of the amending S.I.) by The Tax Credits Schemes (Miscellaneous Amendments No. 4) Regulations 2000 (S.I. 2000/2978), regs. 1(1), 5(1)(2)(b)
- F8
Words in reg. 16(7)(b) substituted (with effect in accordance with reg. 1(5) of the amending S.I.) by The Income-related Benefits Schemes and Social Fund (Miscellaneous Amendments) Regulations 1996 (S.I. 1996/1944), regs. 1(1)(b), 3(2)
- F9
Words in reg. 16(8) substituted (with effect in accordance with reg. 1(2) of the amending S.I.) by The Tax Credits Schemes (Miscellaneous Amendments) Regulations 1999 (S.I. 1999/2487), regs. 1(1), 26(3)(4)(b)
- F10
Reg. 16(8A)-(8C) inserted (with effect in accordance with reg. 1(4) of the amending S.I.) by The Tax Credits (Miscellaneous Amendments No. 3) Regulations 2001 (S.I. 2001/892), regs. 1(2), 5(3)