NIM10017 - Aggregation of Earnings: Calculating NICs: Earnings periods: Mixed contracted-out and not contracted-out employments: Employee has Appropriate Personal Pension (APP) arrangement

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

For the tax years prior to 6 April 2012 NICs are calculated based on the shortest earnings period for the not contracted-out employment(s).

Example 1

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

Example 2

If a person with an APP has three jobs in which one is contracted-out employment with a monthly earnings period, one is not contracted-out with a weekly earnings period, and the third is not contracted-out with a four-weekly earnings period, the earnings period for NICs purposes is weekly.