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HMRC internal manual

National Insurance Manual

NIM10012 - Aggregation of Earnings: Calculating NICs: Earnings Periods: General

Regulation 6, SS(C)R 2001

Up to 5th April 2016 (abolition of contracting out)

The earnings period over which NICs are calculated is dependant on the type of NICs payable for each employment. Regulation 6 of the Social Security (Contributions) Regulations 2001 provided for the earnings period to be adopted in given circumstances. Prior to the abolition of contracting out the earnings period to use depended on whether:

(1)  all employments were contracted out or

(2) there was a mixture of contracted out and non contracted out employments,

(3) none of the employments were contracted out.

Where at least one of the employments was contracted out it is important to ascertain whether the earner held an Appropriate Personal Pension (APP) scheme. The correct earnings period to use is dependent on all of these factorst earnings period.


From 6th April 2016

After 6th April 2016, Regulation 6 SS(C)R 2001 was amended by regulation 9 of the Social Security (Contributions) (Amendment) (No 2) Regulations 2016 (2016/352).

As Contracted out employments no longer exist, the earnings period to use is the shorter (or shortest) of the earnings periods in respect of earnings derived from the employments.