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Pension contributions on Redundancy pay?
wakefly
Posts: 2 Newbie
Please can anyone tell me if I will have to pay any company private Pension contributions on my redundancy pay, below or above the 30K
limit, thanks.
limit, thanks.
0
Comments
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You ought not to pay pension contributions on any severance/compensation, but you may do so any PILON (pay in lieu of notice).
Opinions differ on the PILON. My own view is that you are being paid "as normal" but without the requirement to turn up to work - so that pension contributions ought to be due. This is not just your own contributions, but those that your employer would normally pay, too.
However, severance/compensation is a different matter. This is not "normal pay" but compensation for loss of your job.Warning ..... I'm a peri-menopausal axe-wielding maniac
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I was just going to ask the same thing.
Are you allowed to opt out of the pension contribution for your last pay? Doesn't really seem worth it.... and I'd rather the cash.working on clearing the clutterDo I want the stuff or the space?0
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