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ESA - PILON or contractual notice pay

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1 day 22 hours ago #314763 by KScot
I am about to be medically retired, and have 3 months paid notice. I am currently not working and on nil pay due to illness.

Are 1. contractural notice pay (that you do not work), and 2. PILON, counted as income for NS ESA purposes?

My employer wants to pay me my three month's notice, month by month over three months. I will not be working during this period. Would this count as income for NS ESA?

It would certainly exceed the permitted work allowance, in money terms, and I am concerned that if notice pay does count as income, getting paid it over 3 months would mean me losing eligibility for ESA and having to reapply.

Would it be better to try to get the 3 month's PILON to be paid in one go, when I am dismissed? If it IS counted as income, this would presumably only impact my ESA for 1 week and not end my eligibility.

Thanks

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2 hours 31 minutes ago #314794 by David
Replied by David on topic ESA - PILON or contractual notice pay
Hi K Scot

PILON and holiday pay are not taken into account for New Style ESA. However if your employer is carrying on paying you how will he account for the payments on his digital Real Time Earnings payroll which is shared with the DWP and HMRC? Also what will be the date on your P45?

David

David

Nothing on this board constitutes legal advice - always consult a professional about specific problems

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