I have been in an IVA for 3.5 years so far. I receive a variable annual bonus. A clause in the IVA states that I mus share 50% of anything over 10% of my take home pay. Last year as my annual payment was less than 10% I was told to pay nothing. This year, the firm are saying I should pay 50% of the differnce in my monthly pay, which is obviously a much larger % than if my annual payment was split over the months. I have raised with them and await a view, but would appreciate a second opinion
I agree with your IP company. Unless your employer pays the bonus monthly you will have to pay half to the IVA. It is not like overtime which is earned monthly and is part of the IVA conditions.
Sore point for me too as unfortunately my IP agrees with your IP. If your annual bonus is more than 10% of your monthly salary then you pay across 50% of the excess. I was told that if yur employer agrees to pay in monthly installments then the 10/50/50 rule is applied monthly. So in my case my bonus is likely to be about 8% - paid motion I keep all of it, paid annually I pay over a large chunk.
