Holiday Pay
NIC-free holiday pay for all in scope industry employees
Welplan operates the centrally managed, Inland Revenue approved holiday pay schemes for the hvacr industry which allow holiday pay to be provided free of employers’ and employees’ National Insurance contributions. This means a very significant saving of 12.8 per cent of holiday pay cost to the employer and up to 11 per cent to the employee, depending on earnings. This is a saving to the employer of over £200 a year per employee on average earnings of £18,000.
Holiday pay can be provided through either:
- the Welplan hvacr Welfare and Holiday Pay scheme, which covers the holiday pay required by the industry’s National Agreement, or
- the Welplan Plus benefit scheme, for greater flexibility, which allows any level of holiday pay, any number of days and any holiday pattern.
- available for all operatives and engineers who meet the in scope requirements(see below)
- rebate on HVCA membership subscriptions
- simple to administer – fully computerised and with automated data collection service
- free Death-in-Service benefit cover for clerical, technical and administrative staff when employer participates fully in the Welplan or Welplan Plus schemes
In his Pre Budget Review (October 2007) the Chancellor confirmed that National Insurance concession for Holiday Pay funded through centrally managed holiday pay schemes will be available to the Construction Industry until 31 October 2012. There after this national insurance concession will be withdrawn.
To participate in the scheme employers must be engaged in the construction industry, and employees must be personally engaged in construction work. Both activities are defined in the Finance Act 2004 section 74.
Click here for full details of in scope activities
For more information please view the PDF file below.
