What are Earnings
For National Insurance purposes, earnings wages or salary inclusive of overtime payments, include more than the basic wage or salary. Earnings also include: -
- Acting allowances.
- Overtime payments.
- Housing Allowance.
- Cost of Living Allowances.
- Commission on sales.
- Production or efficiency bonuses.
- Danger or dirt money.
- Payments for standby duty.
- Allowances for dependents.
Therefore these should all be included in determining the earnings class of the employee for the particular pay period.
What Are Not Earnings
The following payments should not be treated as earnings:
- Pensions for past services.
- Severance benefits.
- Payments under private health insurance plans.
- Dividends from investments.
Only the first $2308.00 per week or $10,000.00 per month of the employee's earnings is insured under the National Insurance System. This means that even if a person's salary is more than that amount the first $10,000.00 is insured.
NOTE: With effect from March 4, 2013 the income ceiling of $8,300.00 per month was increased to $10,000.00 per month in order to maintain the real value of insured income.