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HMRC internal manual

National Insurance Manual

Class 1 NICs: earnings of employees and office holders: retirement benefits schemes from 6th April 2006: employer-financed pension only schemes: employer's payments into such schemes

Paragraph 9(1)(a) of Part 6 of Schedule 3 to the Social Security (Contributions)Regulations 2001 (as inserted by regulation 8(7) of the Social Security (Contributions)(Amendment No. 2) Regulations 2006)

An employer’s payment into an employer-financed pension only scheme(“EFPOS”) is disregarded in the calculation of earnings for the purposes ofClass 1 NICs.


  • the meaning of an “EFPOS”, see NIM02795
  • details of the Class 1 NICs position on a payment out of an EFPOS, see NIM02797.