41HProtected earnings

1. Despite anything in sections 41B to 41G, where a deduction notice is issued to an employer of an aided person, the employer must not, in making deductions under the deduction notice, reduce the amount paid to the aided person by way of salary or wages in respect of any week to an amount that is less than 60% of the amount calculated as being the aided person's net ordinary weekly pay for a week.

2. For the purposes of this section, the aided person's net ordinary weekly pay for a week is the balance left after deducting from the aided person's ordinary weekly pay (as defined in section 8 of the Holidays Act 2003) the amount of tax required to be withheld or deducted in accordance with the PAYE rules of the Income Tax Act 2007 if that ordinary weekly pay were the only salary or wages paid to the aided person by the employer in respect of a week.

3. For the purposes of this section, where deductions are required to be made from a payment of a kind described in any of paragraphs (b) to (d) of the definition of payment in section 41A, then—

4. the payment is deemed to be salary or wages; and
5. the person required to make the payment is deemed to be the employer of the aided person.