§ Mrs. Wiseasked the Secretary of State for Social Services whether earnings-related benefits take into account tips as well as basic earnings in trades such as catering where tips can be an important component of earnings.
§ Mr. OrmeEarnings-related benefits derive from earnings on which Class 1 earnings-related contributions have been paid. Class 1 contributions are chargeable on gratuities which are paid out, or allocated, to the employee by the employer under a system which the employer operates; for example, by way of service charges. Contributions are not chargeable on gratuities which the employee receives directly or through a system not operated by the employer.