Pensionable Pay

This is the pay on which you normally pay pension contributions. Typically pensionable pay includes:

  • your normal salary or wages
  • bonuses
  • overtime (both contractual and non-contractual)
  • maternity, paternity, adoption and shared parental pay
  • shift allowance
  • additional hours payments if you work part-time
  • any other taxable benefit specified in your contract as being pensionable

You do not pay contributions on:

  • any travelling or subsistence allowances
  • pay in lieu of notice
  • pay in lieu of loss of holidays
  • payment as an inducement not to leave before the payment is made
  • any award of compensation (other than payment representing arrears of pay) made for the purpose of achieving equal pay
  • pay relating to loss of future pensionable payments or benefits
  • pay paid by your employer if you go on reserve forces service 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