Pensionable Pay

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Pensionable pay is the pay that pension contributions are deducted from. Pensionable pay includes:
  • your normal salary or wages
  • bonuses
  • overtime – both contractual and non-contractual
  • pay for additional hours if you work part time
  • maternity, paternity, adoption and shared parental pay
  • shift allowance
  • any other taxable benefits specified as pensionable in your contract.


You do not pay pension contributions on:

  • any travelling or subsistence allowances
  • pay in lieu of notice
  • pay in consideration of loss of holidays
  • pay as an inducement not to leave before the payment is made
  • any award of compensation made for the purpose of achieving equal pay, other than a payment representing arrears of pay
  • pay relating to loss of future pensionable payments or benefits
  • pay paid by your employer when you are on reserve forces leave
  • the monetary value of a car or pay received in lieu of a car
  • any sum which has not had tax liability determined on it.