NIM08730 - Earnings Periods: Earnings only occasionally reach Lower Earnings Limit (LEL)

Regulation 3 of the Social Security (Contributions) Regulations 2001 (SSCR 2001) (SI 2001 No 1004)

When earnings only occasionally reach the LEL, determine the earnings period by using the interval at which the employer made all the payments, not just those reaching the LEL.

Example

An employee is regularly paid each week according to the number of hours worked. Every other week the employee works twice as many hours and his earnings exceed the LEL. In those weeks where fewer hours are worked the employee’s earnings are below the LEL. Since the employee is paid every week, his earnings period is a week and each set of earnings is subject to the weekly LEL and PT.