What we count as earnings
What are net earnings?
This is what is left after the deduction of:
- income tax
- class 1 national insurance contributions
- regular contributions paid into a company pension scheme
We do not class the following as earnings:
- amounts paid by a public department of any country outside the UK
- any social security pension, allowance or benefit
- tax credits
- any pension or allowance paid for disability
- guaranteed minimum pension within the Social Security Pensions (Northern Ireland) Order 1975
- statutory maternity pay
- statutory paternity pay
- statutory adoption pay
- statutory redundancy pay
A deduction from earnings can only be made from the following types of earnings:
- wages and salary, fees, bonus, commission, overtime pay or any payment on top of wages and salary under a contract of services
- private or occupational pensions and compensation payments for loss or reduction of earnings
- statutory sick pay
- contractual sick pay
- contractual maternity pay
- contractual redundancy pay
- contractual paternity pay
- contractual adoption pay
Related Information
For Child maintenance worked on or after 03/03/03
For Child maintenance worked before 03/03/03.
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