Explanatory note

The Social Security (Earnings Factor) Amendment Regulations 1985 made provision for employed earners who paid primary Class 1 contributions at a reduced rate as from 6th October 1985 to have the earnings factor derived from those contributions boosted in accordance with a formula.

Regulation 2 of these regulations applies new figures to that formula for the tax year 1986—87. These figures reflect the increases made as from 6th April 1986 in the amount of weekly earnings specified in the earnings brackets in section 4(6B) of the Social Security Act 1975, and so preserve the value of the formula for the tax year 1986—87.