Reduce Your Holiday Pay Costs by 15%
23 July 2010: The Federation is urgently calling on all construction employers to take advantage of the national insurance exemption on holiday pay by signing up to the Construction First Holiday Pay Scheme. Through the scheme companies can save up to 15% on their annual holiday pay bill.
John Armstrong, CEF Managing Director said, “In these extremely difficult economic conditions every construction company is looking to reduce costs across the board. Reducing your holiday pay bill is probably one of the most straightforward and painless steps that a company can take. Every construction company in Northern Ireland should be contacting Construction First to benefit from this exemption – this opportunity is not limited to members of the CEF.”
“Over the last 12 months around £12.6m of holiday pay has been funded through the scheme resulting in total savings of over £2m between employers and employees.”
“National insurance contributions are not paid on the 29 days holiday funded through the scheme annually. Therefore, for each employee earning £400 per week, the employer can save £215 in National Insurance contributions each year and the employee can save £185.”
Due to a change in legislation the savings are only expected to be available until October 2012. Warning companies not to miss out, Mr Armstrong said, “The Government intends to remove this exemption in just over two years time. I encourage all companies to make the most of those two years by contacting Construction First immediately.”
Construction First is a centrally funded Holiday Pay Scheme approved by HMRC. Holiday pay funded through the scheme is exempt from National Insurance contributions for both employers and employees subject to HMRC eligibility criteria.
The holiday pay savings that are available to construction companies in Northern Ireland are provided exclusively through Construction First.
To contact Construction First to find out how much you can save call 028 9087 7149 or email cfl@cefni.co.uk