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What’s the difference between pensionable and non-pensionable bonuses?

Pensionable bonuses are included in pension contribution calculations, and can: 

  • Increase retirement savings, but reduce the pay your employee takes home each month

  • Increase pension costs for your company, but help employee retention

Non-pensionable bonuses aren’t included in pension contribution calculations. 

It’s up to the employer to decide which bonuses are pensionable or non-pensionable.

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