The earnings period applicable to payments which are neither made nor treated as made at regular intervals is ascertained as set out below.
Payments by reference to irregular intervals
If the employee is not only paid at irregular intervals, but their pay is also calculated by reference to those intervals, the earnings period will be the actual interval covered by the payment in question, subject to the normal minimum of one week. This would cover, for example, payments made on the completion of a specific project or assignment.
Contributions on earnings paid in respect of a period which is not an exact multiple of one week or one month must be worked out exactly by applying the appropriate rate to the gross pay, and not by reference to the HMRC tables (where used) (see E8.262). The earnings which are subject to employer's contributions, to employee's contributions, must be calculated separately by dividing the lower and upper earnings limits (see E8.261) and the earnings thresholds (see E8.261) by seven, thus giving an effective daily rate,
To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to Tolley+™ Research or register for a free trial
Web page updated on 17 Mar 2025 17:03