Builders' holiday pay scheme to slash bills
Published 22/06/2011 | 08:00
Employers in the construction industry were urged to take advantage of a national insurance exemption on holiday pay before the end of this month.
The Construction Employers Federation (CEF) said businesses should sign up for the Construction First Holiday Pay Scheme, which allows companies to save up to 15% on their annual holiday pay bill.
It said that by signing up in June, companies would see the benefits 'immediately'.
CEF managing director John Armstrong said: "Reducing your holiday pay bill is probably one of the most straightforward and painless steps a company can take.
"Given that summer holiday pay accounts for 35% of annual holiday pay, every construction company in Northern Ireland should be contacting Construction First now to benefit from this exemption - this opportunity is not limited to members of the CEF."
Mr Armstrong said national insurance contributions are not paid on the 29 days' holiday funded through the scheme every year, so that for an employee earning £400 per week, the employer can save just over £200 in contributions. An employee can save £181.
The savings scheme is expected to run until October 2012.