PART 10INCOME AND EARNINGS

Calculation of net earnings of employed earners81

1

For the purposes of regulation 76 (calculation of earnings derived from employed earner’s employment and income other than earnings) the earnings of a claimant derived from employment as an employed earner to be taken into account are the claimant’s net earnings.

2

For the purposes of paragraph (1) net earnings are to be calculated by taking into account the gross earnings of the claimant from that employment less—

a

any amount deducted from those earnings by way of—

i

income tax,

ii

primary Class 1 contributions under section 6(1)(a) of the Contributions and Benefits Act80;

b

one half of any sum paid by the claimant in respect of a pay period by way of a contribution towards an occupational or personal pension scheme.

3

Where the claimant is an employed earner in the Republic of Ireland the amounts to be deducted for income tax and primary Class 1 contributions under this regulation shall be such amounts as, in the opinion of the Department, would have been deducted had the claimant been employed in Northern Ireland.