Pension Benefits on pay in lieu of holidays

C

Cabbage

Registered User
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Hi folks,

I have recently finished up with my last employer. Normally they pay 9% of my salary into a pension fund. On my last paycheck I had some outstanding holidays which I was paid for. I only received the 9% pension contribution from my employer on the "salary" component, not on the "holiday" component of this paycheck.

Is this normal. I expected that 9% of the total payment (i.e. salary + holiday) would be paid into the pension fund?,

Cabbage.
 
I had the same problem with my last employer.
It's one of these grey areas (or so they would claim.).
 
In this case, I would have been better off to have set my termination date further in the future than I did, and take the holidays. Then, they would have been "basic" salary days and I would have gotten the pension contribution on them. So, if I finish work on the 1st May with 10 days holidays left outstanding I am renumerated x. If I finish work on the 15th May, having taken 10 days holidays, I am renumerated y. This doesn't make sense to me, maybe someone else has an opinion!
 
Hi Cabbage,

I think that standard out there is that deductions such as pension and union are not made with "cessar pay". You are correct you are better off taking your holidays and terminiating your employment at a later date you will win a little interms of the employers matching contribution but will loose a little if you are making union payments.

In my company some employees prefer to take the cessar pay because it allows them 'sign on' at the labour exchange a few days earlier.

ajapale
 
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