PART IVGENERAL PROVISIONS

Meaning of “earnings”20

1

In this regulation “secondary contributor” means a person who is, or but for the provisions of the 1975 Act relating to the lower earnings limit would be, liable to pay a secondary contribution under section 4 of that Act.

2

For the purposes of section 50(3) of the 1986 Act, the expression “earnings” refers to gross earnings and includes any remuneration or profit derived from a woman's employment, except any payment in so far as it is—

a

a payment on account of the woman's earnings in respect of that employment which comprises or represents, and does not exceed in amount, sums which have previously been included in her earnings for the purposes of section 50(3) of the 1986 Act;

b

a payment in respect of a period of holiday F1entitlement, where the sum paid is derived directly or indirectly from a fund to which more than one secondary contributor contributes and the management and control of which are not vested in those secondary contributors, or where the person making the payment is entitled to be reimbursed from such a fund;

c

a payment of or in respect of a gratuity or offering—

i

where the payment is not made directly or indirectly by the secondary contributor and the sum paid does not comprise or represent sums previously paid to the secondary contributor; or

ii

where the payment is not directly or indirectly allocated by the secondary contributor to the woman;

d

any payment in kind F2other than a payment to which regulation 19C of the Social Security (Contributions) Regulations 1979, applies or by way of the provision of board or lodging or of services or other facilities;

F3e

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

f

any payment by way of a pension;

g

a payment of a fee in respect of employment as a minister of religion which does not form part of the stipend or salary paid in respect of that employment;

h

a payment to defray or a contribution towards expenses incurred by women for whom facilities are provided under section 15 of the Disabled Persons (Employment) Act 1944 in travelling to and from the place where they are employed or where training is provided;

i

a payment by way of or derived from shares appropriated under a profit sharing scheme to which the provisions of Chapter III of Part III of the Finance Act 1978 (profit sharing schemes) apply.

F4j

a payment which by virtue of section 643(1) of the Income and Corporation Taxes Act 1988 (employers' contributions) is not regarded as an emolument of the employment chargeable to tax under Schedule E.

3

Where the funds for making a sickness payment in accordance with arrangements of the kind mentioned in section 3(1A)(b) of the 1975 Act are attributable in part to contributions to those funds by the employed earner, there shall be disregarded for the purposes of section 50(3) of the 1986 Act so much of the sickness payment as is attributable to those contributions.

4

For the purposes of section 50(3) of the 1986 Act the expression “earnings” includes also—

a

any sum payable in respect of arrears of pay in pursuance of an order for reinstatement or re-engagement under the 1978 Act;

b

any sum payable by way of pay in pursuance of an order under the 1978 Act for the continuation of a contract of employment;

c

any sum payable by way of remuneration in pursuance of a protective award under the Employment Protection Act 1975;

d

any sum payable by way of statutory sick pay, including sums payable in accordance with regulations made under section 1(5) of the Social Security and Housing Benefits Act 19824.

5

Where goods or services are supplied by a woman and earnings paid to or for the benefit of that woman in respect of that employment include the remuneration for the supply of those goods or services, and on that supply value added tax is chargeable, there shall, for the purposes of section 50(3) of the 1986 Act, be excluded from the calculation of those earnings an amount equal to the value added tax so chargeable.

6

For the avoidance of doubt, in the calculation for the purposes of section 50(3) of the 1986 Act of earnings paid to or for the benefit of a woman, there shall be disregarded—

a

any payment by way of a redundancy payment;

b

any specific and distinct payment of, or contribution towards, expenses actually incurred by a woman in carrying out her employment.