PART 4Income and capital

SECTION 3Employed earners

Earnings of employed earners25

1

Subject to paragraph (2), “earnings” means in the case of employment as an employed earner, any remuneration or profit derived from that employment and includes—

a

any bonus or commission;

b

any payment in lieu of remuneration except any periodic sum paid to a claimant on account of the termination of his employment by reason of redundancy;

c

any payment in lieu of notice;

d

any holiday pay;

e

any payment by way of a retainer;

f

any payment made by the claimant's employer in respect of expenses not wholly, exclusively and necessarily incurred in the performance of the duties of the employment, including any payment made by the claimant's employer in respect of—

i

travelling expenses incurred by the claimant between his home and place of employment;

ii

expenses incurred by the claimant under arrangements made for the care of a member of his family owing to the claimant's absence from home;

g

the amount of any payment by way of a non-cash voucher which has been taken into account in the computation of a person's earnings in accordance with Part 5 of Schedule 3 to the Social Security (Contributions) Regulations 2001 M1;

h

statutory sick pay and statutory maternity pay payable by the employer under the Act;

F2i

ordinary statutory paternity pay payable under Part 12ZA of the ActM2;

F2ia

additional statutory paternity pay payable under Part 12ZA of the Act;

j

statutory adoption pay payable under Part 12ZB of the Act M3;

k

any sums payable under a contract of service—

i

for incapacity for work due to sickness or injury; or

ii

by reason of pregnancy or confinement.

2

Earnings shall not include—

a

subject to paragraph (3), any payment in kind;

b

any payment in respect of expenses wholly, exclusively and necessarily incurred in the performance of the duties of the employment;

c

any occupational pension;

d

any lump sum payment made under the Iron and Steel Re-adaptation Benefits Scheme M4;

e

any payment of compensation made pursuant to an award by an employment tribunal M5 established under the Employment Tribunals Act 1996 M6 in respect of unfair dismissal or unlawful discrimination.

F1f

any payment in respect of expenses arising out of the claimant’s participation in a service user group.

3

Paragraph (2)(a) shall not apply in respect of any non-cash voucher referred to in paragraph (1)(g).