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HMRC internal manual

National Insurance Manual

NIM07062 - Class 1 NICs: Payments made under employment legislation: Earnings period to be used in assessing NICs liability: Payments made under a protective award

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

As mentioned in NIM07060, a payment made under a protectiveaward (see NIM07050 onwards) has its own specific earningsperiod.

The earnings period to be used in assessing the amount of NICs on a payment made under aprotective award is the longer of:

  • the protected period (see NIM07050); or
  • that part of the protected period in respect of which the amount is paid; or
  • a week.


Employer B makes a payment under a protective award to employee B. The payment is forthe period 6 April 2001 to 31 May 2001 (56 days). The protected period (as decided by theemployment tribunal – see NIM07050) runs from 9 March 2001to 31 May 2001 (84 days).

As the longest period is the length of the protected period, the length of the earningsperiod is 84 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.