Explanatory note

These Regulations further amend the Social Security (Earnings Factor) Regulations 1979 (S.I.1979/676).

In particular, regulation 2 substitutes two of the definitions in Schedule 1 to those Regulations. It substitutes the definition of “Class 1 contributions” to ensure that earnings factors are only derived from earnings up to the upper earnings limit and also the definition of “contracted-out contributions” so as to correspond with the new definition of “Class 1 contributions”. It also amends the definition of “the standard level” in that Schedule consequential upon the new definition of “Class 1 contributions”.

Regulation 3 disapplies the amendments in regulation 2 for the purpose of ascertaining a person’s earnings factors in respect of the 2002-3 tax year and any preceding tax year.

These Regulations do not impose any costs on business.