HC Deb 04 April 1984 vol 57 cc593-4W
Mr. Higgins

asked the Secretary of State for Social Services if he is satisfied with the arithmetic in volume 1 of the national insurance contribution tables CF 391 issued by his Department.

Dr. Boyson

Earnings-related contributions may be calculated either by the exact percentage method or by reference to the official national insurance contributions tables. Volume 1 of the tables (CF391) is for use where the employee is not contracted-out and contains tables for earnings periods of one week and one month. The tables are produced in earnings bands of 50p (weekly) and £2.00 (monthly) each contribution being calculated at the midpoint of each band, except at the lower and upper earnings limits where the contributions are calculated exactly. This banding produces marginal differences, in percentage terms, between contributions paid by employees with earnings at the lower end of the band (who pay slightly more than if the exact calculation method were used) and those with earnings at the top of the band (who pay slightly less than if the exact percentage method were applied).

The choice of calculation method for contributions rests entirely with the employer.

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