lower earnings limit

'lower earnings limit' can also refer to...


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The annually adjusted rate of pay below which neither British employees nor employers have to make National Insurance Contributions (NICs). Critics of the LEL point to the fact that it provides an incentive to employers to offer short-hour part-time jobs with very low earnings. Employees may be attracted to these jobs to avoid paying NICs, but then are excluded from a series of statutory benefits, such as Statutory Sick Pay and Statutory Maternity Pay.

Subjects: Human Resource Management.

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