Regulation 4 Meaning of “pensionable pay”I1

England and Wales Not yet in force

Changes not yet applied. Later legislation changes this provision in ways not yet written into the text below:

(1)

An employee’s pensionable pay is the total of—

(a)

all the salary, wages, fees and other payments paid to him for his own use in respect of his employment; and

(b)

any other payment or benefit specified in his contract of employment as being a pensionable emolument.

(2)

But an employee’s pensionable pay does not include—

(a)

payments for non-contractual overtime;

(b)

any travelling, subsistence or other allowance paid in respect of expenses incurred in relation to the employment;

(c)

any payment in consideration of loss of holidays;

(d)

any payment in lieu of notice to terminate his contract of employment; or

(e)

any payment as an inducement not to terminate his employment before the payment is made.

(3)

No sum may be taken into account in calculating pensionable pay unless income tax liability has been determined on it.

Annotations