Unpaid Absences

When the employee is on an unpaid absence for the complete pay period (that is, gross pay is nil), no main scheme contribution is deducted for either the employee or the employer as the person is in non-pensionable employment.

This is irrespective of the type of unpaid absence. However, information is still reported in the MCR.

There is no requirement for a split MCR record to reflect one or more unpaid days in the service period. However, the non-pensionable days are shown as excluded days for full-time workers and their actual pensionable pay reflects the reduction in pay.

Note: Excluded days are reported for part-time workers only if the entire service period is non-pensionable.

Unpaid absence types are identifiable by their legislative grouping code. See Set Up Absences for more details.