Explanatory note

These Regulations further amend the Social Security (Contributions) Regulations 1979 (“the principal Regulations”).

Regulation 2 amends regulation 7 of the principal Regulations by increasing the weekly lower and upper earnings limits for Class 1 contributions for the tax year beginning on 6th April 1988. The lower earnings limit is increased from £39 to £41 and the upper earnings limit from £295 to £305.

Regulation 2 also amends regulation 115 of the principal Regulations by altering the abatement of the percentage rates of primary and secondary Class 1 contributions payable by and in respect of serving members of the forces. In the case of primary contributions the abatement is decreased from 0.9 per cent. to 0.8 per cent. and in the case of secondary contributions from 0.95 per cent. to 0.85 per cent.

Regulation 3 contains revocations including that of regulation 133 of the principal Regulations, which contains special provisions (including abatement of the percentage rates of Class 1 contributions) in respect of registered dock workers. Regulation 4 contains transitional provisions.