Contribution Costs
From the 01 January 2007 the REA provides that 7% of the average Construction Industry wage is deducted for weekly pension contribution. This is broken down to 4.2% employer and 2.8% worker. The pension contribution element qualifies for tax relief based on current tax rate.
2011 Weekly Contribution - Builder Rate
| Employer | Worker | Total | |
|---|---|---|---|
| Pension Benefit * | €28.79 | €19.20 | €47.99 |
| Death in Service benefits * | €1.11 | €1.11 | €2.22 |
| Sick Pay | €1.37 | €0.69 | €2.06 |
| Health Trust | €0.00 | €1.00 | €1.00 |
| Benevolent Fund | €0.19 | €0.50 | €0.69 |
| CIMA | €0.32 | €0.32 | €0.64 |
| Total | €31.78 | €22.82 | €54.60 |
* PAYE & PRSI allowable
It is the responsibility of the employer to deduct the weekly deduction from your wages and in line with the Pensions Act 2002, full contributions must be returned to the pension scheme within 21 days of month following the deduction.
The employer is responsible for any retrospective payments of arrears if
- (i) they fail to register you in a compliant pension scheme (see failure to comply)
- (ii) they fail to deduct and remit the weekly deduction on your behalf