Regulation 22 Calculation of net earnings of employed earners

(1)

For the purposes of regulation 16 (normal 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 Schedule 2 (sums to be disregarded in the calculation of earnings).

(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, and

(ii)

primary Class 1 contributions under the principal 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 regulation 16(8), 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 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 of the Income and Corporation Taxes Act 1988^f2 (personal relief) as is appropriate to his circumstances; but, if the assessment period is less than a year, 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 under the principal Act equivalent to an amount calculated by applying to those earnings the appropriate primary percentage applicable at the date of claim; and

(c)

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

(5)

Where the claimant is an employed earner in the Republic of Ireland the amounts to be deducted for income tax and primary Class 1 contributions under this regulation shall be such amounts as, in the opinion of the adjudication officer, would have been deducted had the claimant been employed in Northern Ireland.

Annotations

Footnotes

f1: See sections 1 and 4 of the Social Security (Northern Ireland) Act 1975 (c. 15); section 1 was amended by Schedule 10 to the Social Security (Northern Ireland) Order 1986, Schedule 9 to the Social Security (Northern Ireland) Order 1989 (S.I. 1989/1342 (N.I. 13)), Article 18(1) and (2) of, and Schedule 7 to, the Social Security (Northern Ireland) Order 1990 (S.I. 1990/1511 (N.I. 15)), Schedule 2 to the Redundancy Fund (Abolition) (Northern Ireland) Order 1991 (S.I. 1991/196 (N.I. 2)) and Article 3(2) and (3) of the Social Security (Contributions) (Northern Ireland) Order 1991 (S.I. 1991/2294 (N.I. 22)); section 4 was amended by paragraph 18(a) of Schedule 5 to the Social Security Pensions (Northern Ireland) Order 1975 (S.I. 1975/1503 (N.I. 15)), Article 3(1) of the Social Security and Family Allowances (Northern Ireland) Order 1976 (S.I. 1976/427 (N.I. 9)), Article 11(2) of the Social Security (Northern Ireland) Order 1979 (S.I. 1979/396 (N.I. 5)), Schedule 5 to the Social Security (Northern Ireland) Order 1982, Articles 9(1) and (2) and 10 of the Social Security (Northern Ireland) Order 1985 (S.I. 1985/1209 (N.I. 16)), Article 3(1) of, and paragraph 1(1) and (2) of Schedule 7 to, the Social Security (Northern Ireland) Order 1989 and S.R. 1991 No. 542
f2: 1988 c. 1