NIM02325 | Class 1 NICs: Earnings of employees and office holders: Retirement or dismissal

Regulation 25 and paragraph 6 of Part 10 of Schedule 3 to the Social Security (Contributions) Regulations 2001

Include in gross pay lump sum payments made on retirement or in the event of dismissal unless they can be accepted as a pension payment or compensation. For details of payments:

• made on termination of employment, see NIM02500

• by way of a pension made:

Do not include redundancy payments as these are specifically excluded from earnings for NICs purposes by virtue of regulation 25 and paragraph 6 of Part 10 of Schedule 3 to the Social Security (Contributions) Regulations 2001:

• before 6th April 2006, see NIM02285

• on or after 6th April 2006, see NIM02700 (contents).