Any arrears of pay, for example a backdated pay increase, must be added to any other earnings received by the employee in the pay period under consideration and NICs assessed on the total amount.
Example
In a particular month an employee who is regularly monthly paid receives :
| Normal earnings | £1800 | |
| Arrears of pay | £1000 | |
| Total | £2800 |
NICs must be assessed on the total of £2800 using the monthly lower earnings limit (LEL), earnings threshold and monthly upper earnings limit (UEL). See NIM01000.
