Unfortunately the sound quality issues we experienced earlier today have returned. We have escalated the original report to our telephony provider and they are working to resolve the issue. Sorry for any inconvenience caused.
Payments counted as earnings
The protected earnings level
The total of all deductions (the Direct Earnings Attachment plus any other deductions in place) cannot leave the employee with less than the protected earnings proportion, which is 60% of their total net earnings during the calculating period to which the deduction relates.
Do not leave an employee with less than 60 percent of their total net earnings
Payments counted as DEA earnings
|Earnings counted for DEA||Earnings not counted for DEA|
|Wages||Statutory Maternity Pay|
|Salary||Statutory Adoption Pay|
|Fees||Ordinary Statutory Paternity Pay|
|Bonuses||Statutory Shared Parental Pay|
|Commission||Any pension, benefit, allowance or credit paid by DWP, a local authority or HMRC|
|Overtime pay||A guaranteed minimum pension under the Pensions Scheme Act 1993|
|Most other payments on top of wages||Amounts paid by a public department of the Government of Northern Ireland or anywhere outside the United Kingdom|
|Occupational Pensions, if paid with wages or salary||Sums paid to reimburse expenses wholly and necessarily incurred in the course of the employment|
|Periodic payments by way of compensation for the loss, abolition or relinquishment, or diminution in the emoluments, of any office or employment||Pay or allowances as a member of Her Majesty’s forces, other than pay or allowances payable to them by you as a special member of a reverse force|
|Statutory Sick Pay||Statutory Redundancy Payments|
If the only earnings your employee receives are those in the right hand column, you cannot calculate a DEA deduction. Similarly, if any of these are paid as part of the earnings, they are not included as part of the employee’s net earnings.
You must take the amount for the Direct Earnings Attachment directly from your employee’s net earnings. Net earnings are the earnings left after deduction of:
- Income Tax
- Class 1 National Insurance contributions
- contributions to a work place pension (including Additional Voluntary Contributions, free standing Additional Voluntary Contributions and Stakeholder Pension Contributions)