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If I were to send staff on unpaid leave due to the effects of the pandemic (I know this would likely be for an undetermined period) and we were to offer them a one time amount of money, say 25% of gross monthly salary, to prop them as a compassionate payment, would this amount be subjected to normal PAYE? How would I go about structuring such a payment? All benefits would continue to run as normal during the unpaid leave.

Note we have already gone the path of reduced pay of 20% but we still foresee financial difficulty in a few month’s time


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Dear Hellen,

Apologies for delayed response. The C19 pandemic has for sure caused disturbance in the manner of usual operations for a lot companies. Based on your query, we would advise as below:

  1. There is no harm is paying a one off amount but it will be subject to the statutory mandatory deductions as prescribed by law. I assume you will make it a one off payment.
  2. Please meet with all staff and explain the scenario to them, if they are not available for a face to face meeting, please have a recorded discussion with each of them. Note all their queries and concerns
  3. Draft a letter clearly stipulating all that was discussed and what the company intends to communicate to them including the fact that all other benefits will remain
  4. Assure them that the company will be monitoring the ongoing situation and inform them accordingly

That would be our advise for now. However, please feel free to engage us in the event of further queries or clarifications


Best Regards


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