OpenLegislation

Regulation 35 Earnings of employed earnersI1C1

England, Wales and Scotland

(1)

F1Subject to paragraphs (2) and (3), “earnings” means in the case of employment as an employed earner, any remuneration or profit derived from that employment and includes—

(a)

any bonus or commission;

(b)

any payment in lieu of remuneration except any periodic sum paid to a claimant on account of the termination of his employment by reason of redundancy;

(c)

any payment in lieu of notice F2...;

(d)

any holiday pay except any payable more than four weeks after the termination or interruption of employment but this exception shall not apply to a claimant to whom F3section 23 of the Act (trade disputes) applies or in respect of whom section 20(3) of the Act (conditions of entitlement to income support) has effect as modified by section 23A(b) of the Act (effect of return to work).

(e)

any payment by way of a retainer;

(f)

any payment made by the claimant's employer in respect of expenses not wholly, exclusively and necessarily incurred in the performance of the duties of the employment, including any payment made by the claimant's employer in respect of—

(i)

travelling expenses incurred by the claimant between his home and place of employment;

(ii)

expenses incurred by the claimant under arrangements made for the care of a member of his family owing to the claimant's absence from home;

(g)

any award of compensation made under section F4112(4) or 117(3)(a) of the Employment Rights Act 1996 (the remedies: orders and compensation, enforcement of order and compensation);

F5(gg)

any payment or remuneration made under section 28, 34, 64, 68 or 70 of the Employment Rights Act 1996 (right to guarantee payments, remuneration on suspension on medical or maternity grounds, complaints to employment tribunals);

(h)

any such sum as is referred to in section F6112(3) of the Contributions and Benefits Act (certain sums to be earnings for social security purposes).

F7(i)

where—

F8(i)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(ii)

a payment of compensation is made in respect of employment which is part-time employment, the amount of the compensation.

F9(j)

the amount of any payment by way of a non-cash voucher which has been taken into account in the computation of a person’s earnings in accordance with F10Part 5 of Schedule 3 to the Social Security (Contributions) Regulations 2001.

F11(1A)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(2)

“Earnings” shall not include—

(a)

F12subject to paragraph (2A), any payment in kind;

(b)

any remuneration paid by or on behalf of an employer to the claimant F13in respect of a period throughout which the claimant is on maternity leave F14, paternity leave F15, adoption leave F16, shared parental leave F17, neonatal care leave or parental bereavement leave or is absent from work because he is ill;

(c)

any payment in respect of expenses wholly, exclusively and necessarily incurred in the performance of the duties of the employment;

(d)

any occupational pension.

F18(e)

any lump sum payment made under the Iron and Steel Re-adaptation Benefits Scheme

F19(f)

any payment in respect of expenses arising out of the F20claimant participating as a service user.

F21(2A)

Paragraph (2)(a) shall not apply in respect of any non-cash voucher referred to in paragraph (1)(j).

F22(3)

In this regulation—

(a)

“compensation” means any payment made in respect of or on the termination of employment in a case where a person has not received or received only part of a payment in lieu of notice due or which would have been due to him had he not waived his right to receive it, other than—

(i)

any payment specified in paragraph (1)(a) to (h);

(ii)

any payment specified in paragraph (2)(a) to F23(e);

(iii)

any redundancy payment within the meaning of section F24135(1) of the Employment Rights Act 1996, and

(iv)

any refund of contributions to which that person was entitled under an occupational pension scheme within the meaning of section 66(1) of the Social Security Pensions Act 1975;

(F25v)

any compensation payable by virtue of section 173 or section 178(3) or (4) of the Education Reform Act 1988.

F26(b)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(c)

“part-time employment” means employment in which a person is not to be treated as engaged in remunerative work under regulation 5 or F276(1) F28and (4) (persons treated, or not treated, as engaged in remunerative work).

Annotations

Textual amendments

F1

Words in reg. 35(1) substituted (9.10.1989) by The Income Support (General) Amendment No. 2 Regulations 1989 (S.I. 1989/1323), regs. 1(1)(b), 11(a)(i)

F2

Words in reg. 35(1)(c) omitted (9.10.1989) by virtue of The Income Support (General) Amendment No. 2 Regulations 1989 (S.I. 1989/1323), regs. 1(1)(b), 11(a)(ii)

F3

Words in reg. 35(1)(d) substituted (11.4.1988) by The Income Support (General) Amendment Regulations 1988 (S.I. 1988/663), regs. 1(1), 17

F4

Words in reg. 35(1)(g) substituted (1.10.2007) by The Social Security (Miscellaneous Amendments) (No. 5) Regulations 2007 (S.I. 2007/2618), regs. 1(1), 5(6)(a)(i)

F5

Reg. 35(1)(gg) inserted (1.10.2007) by The Social Security (Miscellaneous Amendments) (No. 5) Regulations 2007 (S.I. 2007/2618), regs. 1(1), 5(6)(a)(ii)

F6

Words in reg. 35(1)(h) substituted (1.10.2007) by The Social Security (Miscellaneous Amendments) (No. 5) Regulations 2007 (S.I. 2007/2618), regs. 1(1), 5(6)(a)(iii)

F7

Reg. 35(1)(i) added (9.10.1989) by The Income Support (General) Amendment No. 2 Regulations 1989 (S.I. 1989/1323), regs. 1(1)(b), 11(a)(iii)

F8

Reg. 35(1)(i)(i) omitted (14.4.2008) by virtue of The Social Security (Miscellaneous Amendments) Regulations 2008 (S.I. 2008/698), regs. 1(1), 2(7)

F9

Reg. 35(1)(j) added (with effect in accordance with reg. 1(2) of the amending S.I.) by The Social Security Amendment (Non-Cash Vouchers) Regulations 1999 (S.I. 1999/1509), regs. 1(1), 2(5)(a)

F10

Words in reg. 35(1)(j) substituted (2.10.2006) by The Social Security (Miscellaneous Amendments) (No. 4) Regulations 2006 (S.I. 2006/2378), regs. 1(3), 5(3)

F11

Reg. 35(1A) omitted (14.4.2008) by virtue of The Social Security (Miscellaneous Amendments) Regulations 2008 (S.I. 2008/698), regs. 1(1), 2(7)

F12

Words in reg. 35(2)(a) inserted (with effect in accordance with reg. 1(2) of the amending S.I.) by The Social Security Amendment (Non-Cash Vouchers) Regulations 1999 (S.I. 1999/1509), regs. 1(1), 2(5)(b)

F13

Words in reg. 35(2)(b) substituted (with effect in accordance with reg. 1(2) of the amending S.I.) by The Income-related Benefits Schemes (Miscellaneous Amendments) (No. 4) Regulations 1993 (S.I. 1993/2119), regs. 1(1)(a), 12

F14

Words in reg. 35(2)(b) inserted (8.12.2002) by The Social Security (Paternity and Adoption) Amendment Regulations 2002 (S.I. 2002/2689), regs. 1(1)(b), 2(4)

F15

Words in reg. 35(2)(b) substituted (31.12.2014) by The Shared Parental Leave and Statutory Shared Parental Pay (Consequential Amendments to Subordinate Legislation) Order 2014 (S.I. 2014/3255), arts. 1(2), 5(4)

F16

Words in reg. 35(2)(b) substituted (6.4.2020) by The Parental Bereavement Leave and Pay (Consequential Amendments to Subordinate Legislation) Regulations 2020 (S.I. 2020/354), regs. 1, 5(4)

F17

Words in reg. 35(2)(b) inserted (6.4.2025) by The Neonatal Care Leave and Pay (Consequential Amendments to Subordinate Legislation) Regulations 2025 (S.I. 2025/201), regs. 1(2), 5(4)

F18

Reg. 35(2)(e) added (7.4.1997) by The Social Security (Miscellaneous Amendments) Regulations 1997 (S.I. 1997/454), regs. 1(c), 7(a)

F19

Reg. 35(2)(f) added (for specified purposes and with effect in accordance with reg. 1(2) of the amending S.I.) by The Social Security (Miscellaneous Amendments) (No. 4) Regulations 2009 (S.I. 2009/2655), regs. 1(2)(a), 2(7)

F20

Words in reg. 35(2)(f) substituted (28.4.2014) by The Social Security (Miscellaneous Amendments) Regulations 2014 (S.I. 2014/591), regs. 1, 2(3)

F21

Reg. 35(2A) added (with effect in accordance with reg. 1(2) of the amending S.I.) by The Social Security Amendment (Non-Cash Vouchers) Regulations 1999 (S.I. 1999/1509), regs. 1(1), 2(5)(c)

F22

Reg. 35(3) added (9.10.1989) by The Income Support (General) Amendment No. 2 Regulations 1989 (S.I. 1989/1323), regs. 1(1)(b), 11(b)

F23

Word in reg. 35(3)(a)(ii) substituted (7.4.1997) by The Social Security (Miscellaneous Amendments) Regulations 1997 (S.I. 1997/454), regs. 1(c), 7(b)

F24

Words in reg. 35(3)(a)(iii) substituted (1.10.2007) by The Social Security (Miscellaneous Amendments) (No. 5) Regulations 2007 (S.I. 2007/2618), regs. 1(1), 5(6)(b)

F25

Words in reg. 35(3)(a) inserted (1.4.1990) by The Education (Inner London Education Authority) (Transitional and Supplementary Provisions) (No. 2) Order 1990 (S.I. 1990/774), arts. 1, 2

F26

Reg. 35(3)(b) omitted (14.4.2008) by virtue of The Social Security (Miscellaneous Amendments) Regulations 2008 (S.I. 2008/698), regs. 1(1), 2(7)

F27

Word in reg. 35(3)(c) substituted (4.10.1999) by The Social Security (Miscellaneous Amendments) (No. 2) Regulations 1999 (S.I. 1999/2556), regs. 1, 2(4)

F28

Words in reg. 35(3)(c) inserted (3.4.2000) by The Social Security (Miscellaneous Amendments) Regulations 2000 (S.I. 2000/681), regs. 1(1)(c), 2(c)

Modifications

C1

Reg. 35 applied (S.) (29.3.2004) by The Individual Learning Account (Scotland) Regulations 2004 (S.S.I. 2004/83), regs. 1(1), 3(9)

Commencement

I1

Reg. 35 in force at 11.4.1988, see reg. 1

Notes on the whole SI

Textual amendments

F1

1986 c. 50; section 84(1) is an interpretation provision and is cited because of the meanings assigned to the words “prescribed” and “regulations”.

F2

1975 c. 14; section 114 is applied by section 52(3)(b) of the Social Security Act 1986 (c. 50); section 166(3A) is inserted by section 62 of that Act and section 166(1) to (3A) is applied by section 83(1) of that Act.

Notes on Part V

Modifications

C1

Pt. V applied (with modifications) (S.) (6.10.2003) by The National Health Service (Travelling Expenses and Remission of Charges) (Scotland) (No. 2) Regulations 2003 (S.S.I. 2003/460), reg. 1, sch. Pt. I Table A (with reg. 13)