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HMRC internal manual

# Class 1 structural overview from April 2009: calculating earnings limits & thresholds for pay intervals of other than a week

## Lower and upper earnings limits - regulation 11(2) and (2A), SS(C)R 2001

If an employee’s earnings period (see NIM01003) is for a period other than a week, the weekly LEL, UEL and, from 6 April 2009, the UAP are to be replaced by a prescribed equivalent.

The prescribed equivalent of the LEL and UAP (“weekly limits”) are calculated as follows:

 ## Lower and upper earnings limits - regulation 11(2) and (2A), SS(C)R 2001 {#IDA3LCXH}

If an employee’s earnings period (see NIM01003) is for a period other than a week, the weekly LEL, UEL and, from 6 April 2009, the UAP are to be replaced by a prescribed equivalent.

 The prescribed equivalent of the LEL and UAP (“weekly limits”) are calculated as follows: How to calculate the prescribed equivalents of the Lower Earnings Limit and Upper Accrual Point Multiple of a week Multiply the weekly limits by the corresponding number of weeks in the period. A month multiply each of the weekly limits by 4 1/3 Multiple of a month multiply the amount calculated for one month as above (by multiplying each of the weekly limits by 4 1/3) and multiply this result by the corresponding number of months. Round this answer up to the next whole pound. A year multiply the weekly limits by 4 1/3 and then by 12. Round this answer up to the next whole pound Not a multiple of a week or month divide the weekly limits by 7. Multiply the answers by the number of days in the period. Calculate to the nearest penny, with a halfpenny or less being disregarded.

With effect from 6 April 2009, the prescribed equivalent of the upper earnings limit is calculated with reference to a fixed prescribed equivalent where the earnings period is a year (provided at Regulation 11(2A)(b) SS(C)R 2001) which is then used in calculating prescribed equivalent for periods which are other than a week, as follows:

 ## Lower and upper earnings limits - regulation 11(2) and (2A), SS(C)R 2001 {#IDA3LCXH}

If an employee’s earnings period (see NIM01003) is for a period other than a week, the weekly LEL, UEL and, from 6 April 2009, the UAP are to be replaced by a prescribed equivalent.

The prescribed equivalent of the LEL and UAP (“weekly limits”) are calculated as follows:

 ## Lower and upper earnings limits - regulation 11(2) and (2A), SS(C)R 2001 {#IDA3LCXH}

If an employee’s earnings period (see NIM01003) is for a period other than a week, the weekly LEL, UEL and, from 6 April 2009, the UAP are to be replaced by a prescribed equivalent.

 The prescribed equivalent of the LEL and UAP (“weekly limits”) are calculated as follows: How to calculate the prescribed equivalents of the Lower Earnings Limit and Upper Accrual Point Multiple of a week Multiply the weekly limits by the corresponding number of weeks in the period. A month multiply each of the weekly limits by 4 1/3 Multiple of a month multiply the amount calculated for one month as above (by multiplying each of the weekly limits by 4 1/3) and multiply this result by the corresponding number of months. Round this answer up to the next whole pound. A year multiply the weekly limits by 4 1/3 and then by 12. Round this answer up to the next whole pound Not a multiple of a week or month divide the weekly limits by 7. Multiply the answers by the number of days in the period. Calculate to the nearest penny, with a halfpenny or less being disregarded.
 With effect from 6 April 2009, the prescribed equivalent of the upper earnings limit is calculated with reference to a fixed prescribed equivalent where the earnings period is a year (provided at Regulation 11(2A)(b) SS(C)R 2001) which is then used in calculating prescribed equivalent for periods which are other than a week, as follows: How to calculate the prescribed equivalent of the Upper Earnings Limit Multiple of a week Divide the prescribed yearly equivalent by 52 and multiply the result by the number of weeks in the period. Round this answer up to the next whole pound. Multiple of a month Divide the prescribed yearly equivalent by 12 and multiply the result by the number of months in the period. Round this answer up to the next whole pound. Not a multiple of a week or month Divide the prescribed yearly equivalent by 365 and multiply the result by the number of days in the period. Calculate to the nearest penny, with a halfpenny or less being disregarded.

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## Primary & secondary thresholds - regulations 11(3) and (3A), SS(C)R 2001 (as amended by SS(C)(A No.2)R 2011)

If an employee’s earnings period (see NIM01003) is for a period of other than a week, the appropriate threshold is calculated using the prescribed yearly threshold. (set out at Regulation 11(3) for the primary threshold and Regulation 11(3A) for the secondary threshold)

 ## Lower and upper earnings limits - regulation 11(2) and (2A), SS(C)R 2001 {#IDA3LCXH}

If an employee’s earnings period (see NIM01003) is for a period other than a week, the weekly LEL, UEL and, from 6 April 2009, the UAP are to be replaced by a prescribed equivalent.

The prescribed equivalent of the LEL and UAP (“weekly limits”) are calculated as follows:

 ## Lower and upper earnings limits - regulation 11(2) and (2A), SS(C)R 2001 {#IDA3LCXH}

If an employee’s earnings period (see NIM01003) is for a period other than a week, the weekly LEL, UEL and, from 6 April 2009, the UAP are to be replaced by a prescribed equivalent.

 The prescribed equivalent of the LEL and UAP (“weekly limits”) are calculated as follows: How to calculate the prescribed equivalents of the Lower Earnings Limit and Upper Accrual Point Multiple of a week Multiply the weekly limits by the corresponding number of weeks in the period. A month multiply each of the weekly limits by 4 1/3 Multiple of a month multiply the amount calculated for one month as above (by multiplying each of the weekly limits by 4 1/3) and multiply this result by the corresponding number of months. Round this answer up to the next whole pound. A year multiply the weekly limits by 4 1/3 and then by 12. Round this answer up to the next whole pound Not a multiple of a week or month divide the weekly limits by 7. Multiply the answers by the number of days in the period. Calculate to the nearest penny, with a halfpenny or less being disregarded.

With effect from 6 April 2009, the prescribed equivalent of the upper earnings limit is calculated with reference to a fixed prescribed equivalent where the earnings period is a year (provided at Regulation 11(2A)(b) SS(C)R 2001) which is then used in calculating prescribed equivalent for periods which are other than a week, as follows:

 ## Lower and upper earnings limits - regulation 11(2) and (2A), SS(C)R 2001 {#IDA3LCXH}

If an employee’s earnings period (see NIM01003) is for a period other than a week, the weekly LEL, UEL and, from 6 April 2009, the UAP are to be replaced by a prescribed equivalent.

The prescribed equivalent of the LEL and UAP (“weekly limits”) are calculated as follows:

 ## Lower and upper earnings limits - regulation 11(2) and (2A), SS(C)R 2001 {#IDA3LCXH}

If an employee’s earnings period (see NIM01003) is for a period other than a week, the weekly LEL, UEL and, from 6 April 2009, the UAP are to be replaced by a prescribed equivalent.

 The prescribed equivalent of the LEL and UAP (“weekly limits”) are calculated as follows: How to calculate the prescribed equivalents of the Lower Earnings Limit and Upper Accrual Point Multiple of a week Multiply the weekly limits by the corresponding number of weeks in the period. A month multiply each of the weekly limits by 4 1/3 Multiple of a month multiply the amount calculated for one month as above (by multiplying each of the weekly limits by 4 1/3) and multiply this result by the corresponding number of months. Round this answer up to the next whole pound. A year multiply the weekly limits by 4 1/3 and then by 12. Round this answer up to the next whole pound Not a multiple of a week or month divide the weekly limits by 7. Multiply the answers by the number of days in the period. Calculate to the nearest penny, with a halfpenny or less being disregarded.
 With effect from 6 April 2009, the prescribed equivalent of the upper earnings limit is calculated with reference to a fixed prescribed equivalent where the earnings period is a year (provided at Regulation 11(2A)(b) SS(C)R 2001) which is then used in calculating prescribed equivalent for periods which are other than a week, as follows: How to calculate the prescribed equivalent of the Upper Earnings Limit Multiple of a week Divide the prescribed yearly equivalent by 52 and multiply the result by the number of weeks in the period. Round this answer up to the next whole pound. Multiple of a month Divide the prescribed yearly equivalent by 12 and multiply the result by the number of months in the period. Round this answer up to the next whole pound. Not a multiple of a week or month Divide the prescribed yearly equivalent by 365 and multiply the result by the number of days in the period. Calculate to the nearest penny, with a halfpenny or less being disregarded.

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## Primary & secondary thresholds - regulations 11(3) and (3A), SS(C)R 2001 (as amended by SS(C)(A No.2)R 2011)

 If an employee’s earnings period (see NIM01003) is for a period of other than a week, the appropriate threshold is calculated using the prescribed yearly threshold. (set out at Regulation 11(3) for the primary threshold and Regulation 11(3A) for the secondary threshold) ## Lower and upper earnings limits - regulation 11(2) and (2A), SS(C)R 2001 {#IDA3LCXH}

If an employee’s earnings period (see NIM01003) is for a period other than a week, the weekly LEL, UEL and, from 6 April 2009, the UAP are to be replaced by a prescribed equivalent.

The prescribed equivalent of the LEL and UAP (“weekly limits”) are calculated as follows:

 ## Lower and upper earnings limits - regulation 11(2) and (2A), SS(C)R 2001 {#IDA3LCXH}

If an employee’s earnings period (see NIM01003) is for a period other than a week, the weekly LEL, UEL and, from 6 April 2009, the UAP are to be replaced by a prescribed equivalent.

 The prescribed equivalent of the LEL and UAP (“weekly limits”) are calculated as follows: How to calculate the prescribed equivalents of the Lower Earnings Limit and Upper Accrual Point Multiple of a week Multiply the weekly limits by the corresponding number of weeks in the period. A month multiply each of the weekly limits by 4 1/3 Multiple of a month multiply the amount calculated for one month as above (by multiplying each of the weekly limits by 4 1/3) and multiply this result by the corresponding number of months. Round this answer up to the next whole pound. A year multiply the weekly limits by 4 1/3 and then by 12. Round this answer up to the next whole pound Not a multiple of a week or month divide the weekly limits by 7. Multiply the answers by the number of days in the period. Calculate to the nearest penny, with a halfpenny or less being disregarded.

With effect from 6 April 2009, the prescribed equivalent of the upper earnings limit is calculated with reference to a fixed prescribed equivalent where the earnings period is a year (provided at Regulation 11(2A)(b) SS(C)R 2001) which is then used in calculating prescribed equivalent for periods which are other than a week, as follows:

 ## Lower and upper earnings limits - regulation 11(2) and (2A), SS(C)R 2001 {#IDA3LCXH}

If an employee’s earnings period (see NIM01003) is for a period other than a week, the weekly LEL, UEL and, from 6 April 2009, the UAP are to be replaced by a prescribed equivalent.

The prescribed equivalent of the LEL and UAP (“weekly limits”) are calculated as follows:

 ## Lower and upper earnings limits - regulation 11(2) and (2A), SS(C)R 2001 {#IDA3LCXH}

If an employee’s earnings period (see NIM01003) is for a period other than a week, the weekly LEL, UEL and, from 6 April 2009, the UAP are to be replaced by a prescribed equivalent.

 The prescribed equivalent of the LEL and UAP (“weekly limits”) are calculated as follows: How to calculate the prescribed equivalents of the Lower Earnings Limit and Upper Accrual Point Multiple of a week Multiply the weekly limits by the corresponding number of weeks in the period. A month multiply each of the weekly limits by 4 1/3 Multiple of a month multiply the amount calculated for one month as above (by multiplying each of the weekly limits by 4 1/3) and multiply this result by the corresponding number of months. Round this answer up to the next whole pound. A year multiply the weekly limits by 4 1/3 and then by 12. Round this answer up to the next whole pound Not a multiple of a week or month divide the weekly limits by 7. Multiply the answers by the number of days in the period. Calculate to the nearest penny, with a halfpenny or less being disregarded.
 With effect from 6 April 2009, the prescribed equivalent of the upper earnings limit is calculated with reference to a fixed prescribed equivalent where the earnings period is a year (provided at Regulation 11(2A)(b) SS(C)R 2001) which is then used in calculating prescribed equivalent for periods which are other than a week, as follows: How to calculate the prescribed equivalent of the Upper Earnings Limit Multiple of a week Divide the prescribed yearly equivalent by 52 and multiply the result by the number of weeks in the period. Round this answer up to the next whole pound. Multiple of a month Divide the prescribed yearly equivalent by 12 and multiply the result by the number of months in the period. Round this answer up to the next whole pound. Not a multiple of a week or month Divide the prescribed yearly equivalent by 365 and multiply the result by the number of days in the period. Calculate to the nearest penny, with a halfpenny or less being disregarded.

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## Primary & secondary thresholds - regulations 11(3) and (3A), SS(C)R 2001 (as amended by SS(C)(A No.2)R 2011)

 If an employee’s earnings period (see NIM01003) is for a period of other than a week, the appropriate threshold is calculated using the prescribed yearly threshold. (set out at Regulation 11(3) for the primary threshold and Regulation 11(3A) for the secondary threshold) Multiple of a week Divide the prescribed yearly threshold by 52 and multiply the result by the number of weeks in the period. Round this answer up to the next whole pound. Multiple of a month Divide the prescribed yearly threshold by 12 and multiply the result by the number of months in the period. Round this answer up to the next whole pound. Not a multiple of a week or month Divide the prescribed yearly threshold by 365 and multiply the result by the number of days in the period. Calculate to the nearest penny, with a halfpenny or less being disregarded.