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Does pay in lieu of notice pay NI credits?

jmb1
jmb1 Posts: 261 Forumite
Part of the Furniture 100 Posts Name Dropper
edited 6 September 2024 at 9:42AM in Benefits & tax credits
Recently made redundant with a pilon of 2 months salary. As far as I've read I pay the same tax and NI on it as I would have as a salary. So does it definitely pay credits to my state pension?

Reason being, i was looking at claiming jsa but am entitled to just a few quid so only worth claiming for ni credits. Unless it's already covered by the pilon payment?

Comments

  • kaMelo
    kaMelo Posts: 2,879 Forumite
    Sixth Anniversary 1,000 Posts Name Dropper
    It depends why you're asking. 

    Earned income doesn't give NI credits as such, it counts income towards the earnings threshold. If you have gross earnings this financial year above £6396, (excluding any weeks where earnings were below £123) then you will already have a full year in regard to state pension.

    Other benefits such as JSA and ESA require a certain number of weeks contributions to have been made rather than total earnings to qualify.

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