www.iva.co.uk

Hi All

My employer has just introduced a new bonus scheme, which is connected to the companies turnover and if the company achieves its target pays a % to each employee of their annual salary.

Given the bonus is an annual amount, but will be paid in a months salary how should it be handled?

Given it’s an annual bonus can I keep the first 10% of my annual wage and then split the difference 50/50 or will it be viewed as a 1 month bonus and therefore I can keep 10% of a months wage and then split the difference 50/50?

Has anyone also experienced this with PayPlan?

Thanks

In the 'old days' it would have been treated as a monthly bonus and you would only have got the 10% disregard based on monthly income. However, I have seen some IP's treat it as though you were paid it in monthly installments.
Payplan have altered the way they seem to work a fair bit in the last year or two, after an internal restructuring, so it is difficult to predict the way they will treat this..