(1) The Principal Act is amended -

(a) in section 2(1) by substituting the following definition for the definition of "reckonable earnings":

"'reckonable earnings' means, subject to section 13(2) (da) and to regulations, earnings derived from insurable employment or insurable (occupational injuries) employment;",

and

(b) in section 13(2) -

(i) in paragraph (d), by substituting "Subject to paragraph (da), subsection (8)" for "Subject to subsection (8)",

and

(ii) by inserting the following paragraph after paragraph (d):

"(da) For the purposes of paragraph (d), reckonable earnings shall be reduced by -

(i) so much of the allowable contribution referred to in paragraph (e) of regulation 41 (inserted by section 16 of the Financial Emergency Measures in the Public Interest Act 2009) of the Income Tax (Employments) (Consolidated) Regulations 2001 (S.I. No. 559 of 2001), and

(ii) half of so much of the allowable contribution referred to in -

(I) paragraphs (a) to (d) of regulation 41, and

(II) regulation 42,