Social Security Contributions and Benefits Act 1992

23 Provisions supplemental to sections 21 and 22

(1) Earnings factors derived as mentioned in section 22(1)(a) above, including earnings factors as increased by any order under section 148 of the Administration Act—

(a) shall be expressed, subject to subsection (2) below, as whole numbers of pounds; and

(b) shall be made ascertainable from tables or rules to be drawn up by the Secretary of State and embodied in regulations.

(2) Subsection (1) above does not require earnings factors in respect of the tax year 1978-79 or any subsequent tax year which have been revalued for the purpose of calculating guaranteed minimum pensions under the Pensions Act to be expressed as whole numbers of pounds.

(3) The tables and rules referred to in subsection (1) above shall be drawn up so that, in general—

(a) in respect of the tax year 1987-88 and any subsequent tax year, the amount of earnings upon which primary Class 1 contributions have been paid or treated as paid gives rise, subject to subsection (4) below, to an earnings factor for that year equal or approximating to the amount of those earnings; and

(b) any number of Class 2 or Class 3 contributions in respect of a tax year gives rise to an earnings factor for that tax year equal or approximating to that year’s lower earnings limit for Class 1 contributions multiplied by the number of contributions.

(4) The Secretary of State may by regulations make such modifications of subsection (3)(a) above as appear to him to be appropriate in consequence of section 8(2) above.