PART I EARNiNGS
Chapter 1Earnings of an employed earner
1.—(1) Subject to sub-paragraphs (2) and (3), “earnings" means in the case of employment as an employed earner, any remuneration or profit derived from that employment and includes—
(a)any bonus, commission, royalty or fee;
(b)any holiday pay except any payable more than 4 weeks after termination of the employment;
(c)any payment by way of a retainer;
(d)any payment made by the parent’s employer in respect of any expenses not wholly, exclusively and necessarily incurred in the performance of the duties of the employment;
(e)any award of compensation made under section 68(2) or 71(2)(a) of the Employment Protection (Consolidation) Act 1978 M1 (remedies and compensation for unfair dismissal);
(f)any such sum as is referred to in section 112 of the Contributions and Benefits Act (certain sums to be earnings for social security purposes);
(g)any statutory sick pay under Part I of the Social Security and Housing Benefits Act 1982 M2 or statutory maternity pay under Part V of the Social Security Act 1986 M3;
(h)any payment in lieu of notice and any compensation in respect of the absence or inadequacy of any such notice but only insofar as such payment or compensation represents loss of income;
(i)any payment relating to a period of less than a year which is made in respect of the performance of duties as—
(i)an auxiliary coastguard in respect of coast rescue activities;
(ii)a part-time fireman in a fire brigade maintained in pursuance of the Fire Services Acts 1947 to 1959 M4;
(iii)a person engaged part-time in the manning or launching of a lifeboat;
(iv)a member of any territorial or reserve force prescribed in Part I of Schedule 3 to the Social Security (Contributions) Regulations 1979 M5;
(j)any payment made by a local authority to a member of that authority in respect of the performance of his duties as a member, other than any expenses wholly, exclusively and necessarily incurred in the performance of those duties.
(2) Earnings shall not include—
(a)any payment in respect of expenses wholly, exclusively and necessarily incurred in the performance of the duties of the employment;
(b)any occupational pension;
(c)any payment where—
(i)the employment in respect of which it was made has ceased; and
(ii)a period of the same length as the period by reference to which it was calculated has expired since that cessation but prior to the effective date;
(d)any advance of earnings or any loan made by an employer to an employee;
(e)any amount received from an employer during a period when the employee has withdrawn his services by reason of a trade dispute;
(f)any payment in kind;
(g)where, in any week or other period which falls within the period by reference to which earnings are calculated, earnings are received both in respect of a previous employment and in respect of a subsequent employment, the earnings in respect of the previous employment.
(3) The earnings to be taken into account for the purposes of calculating N and M shall be gross earnings less—
(a)any amount deducted from those earnings by way of—
(i)income tax;
(ii)primary Class 1 contributions under the Contributions and Benefits Act; and
(b)one half of any sums paid by the parent towards an occupational or personal pension scheme.
Marginal Citations
M5S.I. 1979/591; the relevant amending instrument is S.I. 1980/1975.
2.—(1) Subject to sub-paragraphs (2) to (4)—
(a)where a person is paid weekly, the amount of those earnings shall be determined by aggregating the amounts received in the 5 weeks ending with the relevant week and dividing by 5;
(b)where a person is paid monthly, the amount of those earnings shall be determined by aggregating the amounts received in the 2 months ending with the relevant week, multiplying the aggregate by 6 and dividing by 52;
(c)where a person is paid by reference to some other period, the amount of those earnings shall be determined by aggregating the amounts received in the 3 months ending with the relevant week, multiplying the aggregate by 4 and dividing by 52.
(2) Where a person’s earnings include a bonus or commission which is paid during the period of 52 weeks ending with the relevant week and is paid separately from, or, in relation to a longer period than, the other earnings with which it is paid, the amount of that bonus or commission shall be determined by aggregating such payments received in the 52 weeks ending with the relevant week and dividing by 52.
(3) Subject to sub-paragraph (4), the amount of any earnings of a student shall be determined by aggregating the amount received in the year ending with the relevant week and dividing by 52 or, where the person in question has been a student for less than a year, by aggregating the amount received in the period starting with his becoming a student and ending with the relevant week and dividing by the number of complete weeks in that period.
(4) Where a calculation would, but for this sub-paragraph, produce an amount which, in the opinion of the child support officer, does not accurately reflect the normal amount of the earnings of the person in question, such earnings, or any part of them, shall be calculated by reference to such other period as may, in the particular case, enable the normal weekly earnings of that person to be determined more accurately and for this purpose the child support officer shall have regard to—
(a)the earnings received, or due to be received, from any employment in which the person in question is engaged, has been engaged or is due to be engaged;
(b)the duration and pattern, or the expected duration and pattern, of any employment of that person.