To decide normal weekly earnings
1) establish the assessment period (DMG 23001 and 23020+)
taking into account any special factors that may affect it, for
example
1.1) the applicant has recently started or resumed work or changed the number of hours worked
1.2) a trade dispute at the person's place of work
1.3) bonus or commission paid separately or at a different frequency from other earnings
1.4) absence at the date of application due to sickness
1.5) a period of short time work
1.6) the disregard for any weeks or months of irregular or unusual net earnings
1.7) fluctuating earnings
1.8) changes in net earnings during the last three months
1.9) other variable factors such as tax adjustments, sickness or maternity absences
Note points 1.4 to 1.9 above apply to DPTC applications only
2) establish the weekly or monthly gross earnings by
deducting from the earnings any allowable expenses
3) calculate the weekly or monthly net earnings by deducting
from each payment of gross earnings the appropriate amount of
3.1 tax
3.2 SS contributions and
3.3) half of any amount paid to an occupational or personal pension scheme
4) decide a weekly figure
4.1) in weekly paid cases - by averaging (if appropriate) the amounts from 3.
4.2) in monthly paid cases - by averaging (if appropriate), the amounts from 3., multiplying that result by twelve and dividing by 52
add any amount for bonus or commission calculated separately
apply the simplification formula (
WFTC only) DMG23006
The decision maker should then consider whether to treat the
applicant as having notional earnings
Note Where a person had nil earnings throughout the
assessment period but has satisfied the remunerative work test
(DMG12000 et seq) their earnings should be treated as nil
An estimate of earnings should only be used where the special
rules at DMG23160 apply, or the earnings are excluded as at 23008
and 23009
