Explanatory note

These Regulations amend the Social Security (Categorisation of Earners) Regulations 1978 (S.I. 1978/1689) (“the 1978 Regulations”)

Regulation 1 provides for citation and commencement.

Regulation 2 omits the entries in columns (A) and (B) in paragraph 13 from Part 3 of Schedule 1 to the 1978 Regulations. Part 3 of Schedule 1 contains a list of employments which are to be disregarded in relation to liability for National Insurance contributions. Column (a) of paragraph 13 refers to employment as a Queen’s Gurkha officer or as any other member of the Brigade of Gurkhas of a person who was recruited for that Brigade in Nepal. The effect of this regulation is that Gurkhas recruited in Nepal will be liable to pay National Insurance Contributions in the same way as other serving member of the UK armed forces. The Ministry of Defence will also become liable to pay secondary National Insurance Contributions on the Gurkhas' earnings. Regulation 2 also amends (as a consequence of the removal of paragraph 13) the entry in column (B), sub-paragraph (a) in paragraph 12 of the Schedule. The effect of the amendment is that the exemption conferred in relation to members of visiting forces and international defence organisations does not extend to members of the naval, military air forces of the Crown, if the force is raised in the United Kingdom or has its depot or headquarters in the United Kingdom. The Gurkhas, though raised in Nepal, now have their depot in the United Kingdom.

These Regulations do not impose any new costs on business.