NIM10016 - Aggregation of Earnings: Calculating NICs: Earnings periods: Mixed contracted-out and not contracted-out employments: Employee has no Appropriate Personal Pension (APP) arrangement

Regulation 6 of the Social Security Contributions Regulations 2001 (SSCR 2001) (SI 2001 No 1004)

For tax years prior to 6 April 2016 NICs are calculated based on the shortest earnings period for the contracted-out employment(s).

Example 1

If a person has two jobs in which one is contracted-out with a monthly earnings period and one is not contracted-out with a weekly earnings period, the earnings period for NICs purposes is monthly.

Example 2

If a person has three jobs in which two are contracted-out with monthly and weekly earnings periods and the other is not contracted-out with a two weekly earnings periods, the earnings period for NICs purposes is weekly.