Lighten your National Insurance Bill
Holiday pay will have to be paid to employees at some time during the year. Why not reduce this cost and take advantage of the special arrangements that exist in the construction sector, where there is a dispensation that removes the need for both employer and employee to make National Insurance contributions on holiday pay funded through the Scheme. The Scheme is available to members of the JIB who participate in the Combined Benefits Credit Scheme.
Under JIB terms and conditions 22 days annual leave is payable, together with a further 8 days public holiday. 30 days leave equates to 11.5% of the annual basic wage bill. Employer National Insurance rates continue to rise (the last increase being in April 2003, up to 12.8%). There are therefore considerable savings to be made.
Key features of the scheme
- National Insurance Savings of £300 per person per annum can be achieved.
- Holiday pay rates are based on own transport rates for all JIB grades.
- Top-up arrangements are available to accrue holiday pay in accordance with Working Time Regulations, or if you pay rates above JIB own transport rates.
- The holiday pay scheme operates on a four weekly basis and holiday pay is reimbursed in Spring, Summer and Winter payouts.
- Employers may use a Direct Debit facility and therefore only need to notify the ECA Employee Benefits Department when there are changes to their workforce.
- Our Credits Online facility offers an easy and convenient method of notifying us of your credit purchases.
The National Insurance concession will be withdrawn for the construction industry in October 2012, so make sure you benefit from the saving now.
Up to 2012 only individuals directly involved in construction may benefit from the NI concession. For guidance as to who is or is not in scope please read the guide.
Find out more
For more information on the Holiday Pay scheme please call the ECA Employee Benefits Department on 08450 343200.
