# 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:

Earnings Period | 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:

Earnings Period | 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. |

## 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)

Earnings Period | How to calculate the prescribed equivalents of the Primary and Secondary Thresholds |

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. |