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HMRC internal manual

National Insurance Manual

HM Revenue & Customs
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NIM07061 - Class 1 NICs: Payments made under employment legislation: Earnings period to be used in assessing NICs liability: Payments made under a reinstatement order, a re-engagement order or an order for the continuation of a contract of em

Regulation 5(a) Social Security (Contributions) Regulations 2001

As mentioned in NIM07060, a payment made under:

has its own specific earnings period.

The earnings period to be used in assessing the amount of NICs on a payment made under anyof the orders mentioned above is the longer of:

  • the period to which the sum relates; or
  • a week.


Employer A makes a payment under a reinstatement order to employee A. The payment isfor the period 6 April 2001 to 31 May 2001 ie, 56 days. As this period is longer than aweek, the length of the earnings period is 56 days.

For information on how to calculate the value of the:

  • lower earnings limit
  • upper earnings limit
  • earnings thresholds

for the length of earnings period shown in the above example, see NIM01010.