{
  "url": "https://openlegislation.uk/personal-pension-schemes-appropriate-schemes-regulations-1987/regulation-17",
  "json_url": "https://openlegislation.uk/personal-pension-schemes-appropriate-schemes-regulations-1987/regulation-17.json",
  "legislation": "uksi/1987/1109",
  "legislation_title": "The Personal Pension Schemes (Appropriate Schemes) Regulations 1987",
  "legislation_url": "https://openlegislation.uk/personal-pension-schemes-appropriate-schemes-regulations-1987",
  "path": "regulation/17",
  "kind": "regulation",
  "number": "17",
  "heading": "Calculation or estimation of earnings",
  "text": "(1) In relation to any tax year, the earnings of an earner shall be calculated or estimated, for the purposes mentioned in this regulation, on the bases mentioned in this regulation.\n(2) In paragraph (3)—\n“eligible tax week” means any tax week in any part of which the earner in question is at least 16 years of age, and in no part of which he is over pensionable age, and (for the purposes of paragraph (b), but not paragraph (a), of section 3(1) of the Act) which is not a week for which he is entitled to a Class 1 credit, by virtue of regulation 9 of the Social Security (Credits) Regulations 1975, by reason of unemployment; and\n“ineligible tax week” means any tax week which is not an eligible tax week.\n(3) In relation to any eligible tax week in a tax year the earnings of an earner shall be taken to be the amount calculated or estimated in accordance with paragraph (1) divided by the number of eligible tax weeks in that tax year, and in relation to any ineligible tax week they shall be taken to be nil.\n(4) For the purposes of section 3(1)(a) of the Act, the formula set out in paragraph (5)(a), or, if it produces a smaller value for X, the formula set out in paragraph (5)(b), shall be applied, so however that if the formula set out in paragraph (5)(a) produces a negative value for X, or if the value of P is nil, the value of X shall be taken to be nil.\n(5) The formulae mentioned in paragraph (4) are—\n(a) X=P+R−S−52L; and\n(b) X=53U−52L.\n(6) For the purposes of section 3(1)(b) of the Act, the formula set out in paragraph (7)(a), or, if it produces a smaller value for X, the formula set out in paragraph (7)(b), shall be applied, so however that if the formula set out in paragraph (7)(a) produces a negative value for X, or if the value of P−Q is nil, the value of X shall be taken to be nil.\n(7) The formulae mentioned in paragraph (6) are—\n(a) X=P−Q+R−S−52L; and\n(b) X=53U−52L.\n(8) In paragraph (9)—\n(a) “primary Class 1 contributions” does not include contributions which the earner, being a married woman or widow, is liable to make at a reduced rate in accordance with an election which she has made and which is still operative; and\n(b) the reference to contributions as having been paid includes the case of contributions which are treated as having been paid under regulation 39 of the Social Security (Contributions) Regulations 1979 but does not include the case of contributions which are treated as not paid under regulation 38(1) and (2)(a) of those regulations.\n(9) In this regulation—\n(a) L is the lower earnings limit (within the meaning of section 1 of the Social Security Pensions Act 1975) for the tax year in question;\n(b) P is the total earnings, insofar as the earnings for each week did not exceed U, paid to or for the benefit of the earner in relation to the tax year in question, in relation to which primary Class 1 contributions have been paid with respect to employments that are not contracted-out;\n(c) Q is that part (if any) of P which derives from employments prescribed under section 3(2) of the Act (employments in respect of which incentive payments are not to be made);\n(d) R is the total earnings, insofar as the earnings for each week did not exceed U, paid to or for the benefit of the earner in relation to the tax year in question, in relation to which primary Class 1 contributions have been paid with respect to employments that are contracted-out;\n(e) S is the total earnings, insofar as the earnings for each week equalled or exceeded L but did not exceed U, paid to or for the benefit of the earner in relation to the tax year in question, in relation to which primary Class 1 contributions have been paid with respect to employments that are contracted-out;\n(f) U is the upper earnings limit (within the meaning of section 1 of the Social Security Pensions Act 1975) for the tax year in question; and\n(g) X is so much of the earnings paid to or for the benefit of the earner with respect to any employment which is not contracted-out employment in relation to him as exceeds the lower earnings limit but does not exceed the upper earnings limit.",
  "extent": null,
  "status": null,
  "version": "current",
  "annotations": [
    {
      "type": "footnote",
      "label": "f1",
      "text": "S.I. 1975/556, amended by S.I. 1976/1736, 1977/788, 1978/409, 1981/1501, 1982/96, 1983/197, 1987/414, 687."
    },
    {
      "type": "footnote",
      "label": "f2",
      "text": "S.I. 1979/591, to which there are amendments not relevant to these Regulations."
    },
    {
      "type": "footnote",
      "label": "f3",
      "text": "1975 c. 60."
    },
    {
      "type": "footnote",
      "label": "f4",
      "text": "See S.I. 1987/1115, regulation 2."
    }
  ],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/uksi/1987/1109/regulation/17",
    "retrieved_at": "2026-10-29T16:24:52.527382+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}