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PART IVINCOME AND CAPITAL

CHAPTER IIIEMPLOYED EARNERS

Determination of net earnings of employed earners

22.—(1) For the purposes of regulation 17 (average weekly earnings of employed earners), the earnings of a relevant person derived from employment as an employed earner to be taken into account shall, subject to paragraph (2), be his net earnings as determined under paragraph (3).

(2) There shall be disregarded from a relevant person’s net earnings, any sum, where applicable, specified in paragraphs 1 to 11 of Schedule 2.

(3) For the purposes of paragraph (1) net earnings shall be determined by taking into account the gross earnings of the relevant person from that employment over the assessment period, less–

(a)any amount deducted from those earnings by way of–

(i)income tax,

(ii)primary Class 1 contributions under the 1975 Act(1); and

(b)one-half of any sum paid by the relevant person by way of a contribution towards an occupational or personal pension scheme.

(1)

See sections 1(2) and 4 of the Social Security Act 1975 (c. 14); section 4 was amended by the Social Security Pensions Act 1975 (c. 60), Schedule 4, paragraph 36(a), the Education (School-leaving Dates) Act 1976 (c. 5), section 2(4), the Social Security Act 1979 (c. 18), section 14(1), the Social Security and Housing Benefits Act 1982 (c. 24), Schedule 5, the Social Security Act 1985 (c. 53), sections 7(1) and (2) and 8(1) and the Social Security Act 1986, sections 74(1)(a) and (2) and Schedule 10, paragraph 104 and S.I. 1990/321, article 2.