Explanatory note

These Regulations further amend the Social Security (Earnings Factor) Regulations 1979 (“the principal Regulations”). They clarify the principal Regulations, as amended by the Social Security (Earnings Factor) Amendment (No. 2) Regulations 1987 (S.I. 1987/411), by making it clear that insofar as a person’s earnings factors in respect of the tax year commencing on 6th April 1987, or any subsequent tax year, are derived from his earnings upon which primary Class 1 contributions have been paid or treated as paid, they are derived from his earnings paid in that tax year upon which primary Class 1 contributions have been paid or treated as paid in respect of such year.

In the principal Regulations, regulation 2 (ascertainment of earnings factors) and paragraphs 2(1), 3 and 7(3) of Schedule 1 (rules for the ascertainment of earnings factors) are substituted, and paragraph 6 of Schedule 1 is amended.

These Regulations also provide, in the substituted regulation 2 of the principal Regulations, that a person’s earnings factors in respect of the tax year commencing on 6th April 1988, or any subsequent tax year, shall not together exceed an amount equal to 58 times the upper earnings limit for that tax year.

Regulation 3 contains revocations and savings.