The Social Security (Contributions) (Re-rating) Order (Northern Ireland) 1991

Explanatory Note

(This note is not part of the Order.)

This order corresponds to an order (S.I. 1991/505) made by the Secretary of State for Social Security under sections 120(5)and (6), 121(2), 122(1) and 123A(2) of the Social Security Act 1975.

The order increases the amounts of weekly earnings specified in, and reduces the percentage rates appropriate to, the secondary earnings brackets in section 4(6E) of the Social Security (Northern Ireland) Act 1975 (“the Act”), which determine the amount of secondary Class 1 contributions payable under the Act (Article 2). The amounts of weekly earnings are increased, in respect of Bracket 1 from £79 99 to £84 99, in respect of Bracket 2 from £80 00 and £124 99 to £85 00 and £129 99 respectively, in respect of Bracket 3 from £125 00 and £174 99 to £130 00 and £184 99 respectively and in respect of Bracket 4 from £175 00 to £185 00. The percentage rates are reduced, in respect of Bracket 1 from 5 to 4 6 per cent., in respect of Bracket 2 from 7 to 6 6 per cent., in respect of Bracket 3 from 9 to 8 6 per cent. and in respect of Bracket 4 from 10 45 to 10 4 per cent.

The order also increases the rates of Class 2 and Class 3 contributions payable under the Act from £4 55 to £5 15 and from £4 45 to £5 05 respectively (Articles 3(a) and 4). It increases from £2,600 to £2,900 the amount of earnings below which an earner may be excepted from liability for Class 2 contributions (Article 3(b)). It also increases, from £5,450 to £5,900 and from £18,200 to £20,280 respectively, the lower and upper limits of profits or gains between which Class 4 contributions are payable (Article 5).