8 Calculation of primary Class 1 contributions.N.I.
(1)Where a primary Class 1 contribution is payable, the amount of that contribution shall be the aggregate of—
(a)the initial primary percentage of so much of the earner’s earnings paid in the tax week, in respect of the employment in question, as does not exceed the current lower earnings limit; and
(b)the main primary percentage of so much of those earnings as exceeds that limit but does not exceed the current upper earnings limit;
but this subsection is subject to regulations under section 6(5) above and sections 116 to 119 below and to [F1section 37 of the Pensions Act (reduced rates of Class 1 contributions for earners in contracted-out employment)].
(2)For the purposes of this Act the primary percentages shall be as follows—
(a)the initial primary percentage shall be 2 per cent.; and
(b)the main primary percentage shall be [F210 per cent.];
but the rates of those primary percentages are subject to alteration under section 129 of the Administration Act.
(3)In the case of earners paid otherwise than weekly, any reference in subsection (1) above to the current upper, or (as the case may be) lower, earnings limit shall be taken as a reference to the prescribed equivalent of that limit.
(4)The power conferred by subsection (3) above to prescribe an equivalent of a limit includes power to prescribe an amount which exceeds, by not more than £1.00, the amount which is the arithmetical equivalent of that limit.
Textual Amendments
F1Words in s. 8(1) substituted (7.2.1994) by 1993 c. 49, s. 184, Sch. 7 para. 28; S.R. 1994/17, art. 2
F2Words in s. 8(2)(b) substituted (6.4.1994) by S.I. 1994/765 (N.I. 4), arts. 1, 3(1)(2)