PART VIII INCOME AND CAPITAL

Chapter III Employed Earners

Calculation of net earnings of employed earners99

1

For the purposes of regulation 94 (calculation of earnings of employed earners) the earnings of a claimant derived from employment as an employed earner to be taken into account shall, subject to paragraph (2), be his net earnings.

2

Subject to paragraph (3), there shall be disregarded from a claimant’s net earnings, any sum, where applicable, specified in paragraphs 1 to 16 and 19 of Schedule 6.

3

For the purposes of calculating the amount to be deducted in respect of earnings under regulation 80 (contribution-based jobseeker’s allowance: deductions in respect of earnings) the disregards specified in paragraphs 5 to 8 and 11 of Schedule 6 shall not apply.

4

For the purposes of paragraph (1) net earnings shall 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 payable under the Benefits Act; and

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.