earningsrelated

Earnings-related is an adjective used to describe policies, benefits, calculations, or components that depend on an individual's earnings, either past earnings or current income. The term is widely used in social policy, pensions, and payroll contexts to signal that a value is not fixed but scales with earnings.

In pension policy, earnings-related components provide higher benefits for higher lifetime earnings. For example, the United Kingdom historically operated the State Earnings-Related Pension Scheme (SERPS), which credited a portion of earnings toward a pension, a system later replaced by newer arrangements. Similar earnings-related features appear in other countries’ public pensions and in some private pension plans, where the retirement benefit reflects earnings history.

In social security and employee compensation, earnings-related calculations determine payments such as benefits, severance, or wage-based allowances. For instance, statutory redundancy pay is calculated from an employee's earnings (weekly pay) and service length, creating an earnings-related element in the payout.

In taxation and social insurance, earnings-related components may set contribution bases or rate progressions tied to earnings, ensuring higher earners contribute more or receive higher insured benefits.

The term is often hyphenated but may appear as earnings related in less formal usage. While related to earnings-based concepts, earnings-related is distinct from flat-rate or non-earnings-based policies, which do not adjust with earnings.