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Example 3 - Current scheme
Current Scheme - National Insurance number used as reference
No deduction can be taken
First week
The employee’s net earnings are temporarily reduced to £90 a week. The deduction rate is £32 a week, and the protected earnings proportion is £96.
Net earnings £90
Less the protected earnings proportion £96
Leaves £0
Send us £0
You should not take anything towards administrative costs because you cannot take a deduction.
Shortfall of £32 is carried forward to next pay period.
Second week
Net earnings £170
Less the protected earnings proportion £96
Leaves £74
Send us £64
(£32 + £32 shortfall)
You may take and keep up to £1 towards your administrative costs. This amount is in addition to the deduction from earnings order.
As the examples show, different amounts can be taken where earnings fluctuate. If the non-resident parent’s (your employee) earnings regularly falls below their protected earnings proportion, they should contact us as their child maintenance calculation may need to be changed.
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