SCHEDULE 2Calculation of earnings

Calculation of weekly amount of earnings

7.—(1) For the purposes of paragraph 5 (calculation of earnings of employed earners), subject to sub-paragraphs (2) to (4), where the period in respect of which a payment is made—

(a)does not exceed a week, the weekly amount is the amount of that payment,

(b)exceeds a week, the weekly amount is determined—

(i)where that period is a month, by multiplying the amount of that payment by 12 and dividing the product by 52,

(ii)where that period is 3 months, by multiplying the amount of the payment by 4 and dividing the product by 52,

(iii)where that period is a year, by dividing the amount of the payment by 52,

(iv)for any other period, by multiplying the amount of the payment by 7 and dividing the product by the number equal to the number of days in the period in respect of which it is made.

(2) Where a payment of earnings from a particular source is or has been paid regularly and that payment falls to be taken into account in the same award week as a payment of the same kind from the same source, the amount of those earnings to be taken into account in any one award week will not exceed the weekly amount determined under sub-paragraph (1)(a) or (b), as the case may be, of the payment which under paragraph 6 (date on which earnings are treated as paid) is treated as paid first.

(3) Where the amount of the individual’s net earnings fluctuates and has changed more than once, or an individual’s regular pattern of work is such that they do not work every week, the application of sub-paragraphs (1) and (2) may be modified so that the weekly amount of their earnings is determined by reference to their average weekly earnings—

(a)if there is a recognisable cycle of work, over the period of one complete cycle,

(b)if the individual has provided the Scottish Ministers with payslips, over the period to which the payslips relate, up to a maximum period of 26 weeks, or

(c)in any other case, over a period of 5 weeks or such other period as may, in the particular case, enable the individual’s average weekly earnings to be determined more accurately.