PART 6Assessment of income and capital
SECTION 3
Employed earners
Calculation of net earnings of employed earners36
1
For the purposes of regulation 30 (calculation of income on a weekly basis), the earnings of a claimant derived or likely to be derived from employment as an employed earner to be taken into account shall, subject to regulation 33(5) and Schedule 4, be his net earnings.
2
For the purposes of paragraph (1) net earnings shall, except in relation to any payment to which regulation 33(5) refers, be calculated by taking into account the gross earnings of the claimant from that employment over the assessment period, less—
a
any amount deducted from those earnings by way of—
i
income tax;
ii
primary Class 1 contributions under the Act;
b
one-half of any sum paid by the claimant by way of a contribution towards an occupational pension scheme;
c
one-half of the amount calculated in accordance with paragraph (4) in respect of any qualifying contribution payable by the claimant; and
d
where those earnings include a payment which is payable under any enactment having effect in Northern Ireland and which corresponds to statutory sick pay, statutory maternity pay, F6F4... statutory paternity payF5, statutory adoption pay or statutory shared parental pay, any amount deducted from those earnings by way of any contributions which are payable under any enactment having effect in Northern Ireland and which correspond to primary Class 1 contributions under the Act.
3
In this regulation “qualifying contribution” means any sum which is payable periodically as a contribution towards a personal pension scheme.
4
The amount in respect of any qualifying contribution shall be calculated by multiplying the daily amount of the qualifying contribution by the number equal to the number of days in the assessment period; and for the purposes of this regulation the daily amount of the qualifying contribution shall be determined—
a
where the qualifying contribution is payable monthly, by multiplying the amount of the qualifying contribution by 12 and dividing the product by 365;
b
in any other case, by dividing the amount of the qualifying contribution by the number equal to the number of days in the period to which the qualifying contribution relates.
5
Where the earnings of a claimant are determined under sub-paragraph (b) of paragraph (2) of regulation 33 (calculation of weekly income), his net earnings shall be calculated by taking into account those earnings over the assessment period, less—
a
an amount in respect of income tax equivalent to an amount calculated by applying to those earnings F2... the basic rateF7, or in the case of a Scottish taxpayer, the Scottish basic rate, of tax applicable to the assessment period less only F8personal reliefs to which the claimant is entitled under Chapters 2, 3 and 3A of Part 3 of the Income Tax Act 2007 as are appropriate to his circumstances but, if the assessment period is less than a year, the earnings to which the F1F3basic rateF9, or the Scottish basic rate, of tax is to be applied and the amount of the personal F10reliefs deductible under this sub-paragraph shall be calculated on a pro rata basis;
b
an amount equivalent to the amount of the primary Class 1 contributions that would be payable by him under the Act in respect of those earnings if such contributions were payable; and
c
one-half of any sum which would be payable by the claimant by way of a contribution towards an occupational or personal pension scheme, if the earnings so estimated were actual earnings.