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Pay-related social insurance contributions (new rates).
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5.—(1) Section 10 (1) of the Principal Act (as amended by the Amendment Act of 1981) is hereby amended by the substitution of the following paragraphs for paragraphs (b) and (c):
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“(b) Subject to paragraphs (c) and (d) of this subsection, to subsection (7) and to regulations under section 7, where in any contribution year a payment is made to or for the benefit of an employed contributor in respect of reckonable earnings of that employed contributor, there shall be payable an employment contribution comprising—
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(i) a contribution by the employed contributor at the rate of 5.5 per cent., and
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(ii) a contribution by his employer at the rate of 11.3 per cent.,
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of the amount of the reckonable earnings to which such payment relates.
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(c) Where in a particular contribution year an employed contributor's reckonable earnings have amounted to the sum of £9,500 and contributions under paragraph (b) have been paid in respect of those reckonable earnings, no further such contribution shall be payable in respect of any reckonable earnings of that employed contributor in that contribution year.”.
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(2) Section 11 (1) of the Principal Act (as amended by the Amendment Act of 1981) is hereby amended by the substitution of the following paragraph for paragraph (b):
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“(b) A percentage rate for the purpose of paragraph (a) (i) shall be—
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(i) in the case of a voluntary contributor who, immediately before ceasing to be an employed contributor, was employed in employment in respect of which the employment contributions payable are not reckonable for the purposes of old age (contributory) pension, 2.6 per cent.,
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(ii) in the case of a voluntary contributor who, immediately before ceasing to be an employed contributor, was employed in employment in respect of which the employment contributions payable are reckonable for the purposes of old age (contributory) pension, 6.6 per cent., and
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(iii) in the case of a person to whom subsection (2) applies and who, by virtue of compliance with that subsection, continues to be a voluntary contributor, 4.0 per cent.”.
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(3) This section shall come into operation on the 6th day of April, 1982.
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