Can childcare vouchers be deducted from holiday pay when quitting work?

[Cupcakeaddict]

I get childcare vouchers and I understand that my employers will carry on providing the vouchers when I'm on statutory maternity pay. I'm not planning on going back and I will get a payment for my holiday at the end of my notice period. I was wondering whether they will be able to deduct 9 months of childcare vouchers out of my holiday pay when I quit?

They can't deduct 9 months however they can deduct (for example) one month's vouchers from one month's holiday pay.

If they are paying more than SMP they can also deduct childcare vouchers from your occupational maternity pay, but not from SMP.

the holiday pay will be beased on your reduced salary.

Salary sacrifice is actually a reduction of contractual salary not a deduction from pay (even though it's often shown as a deduction on payslip).

So your holiday pay (along with any maternity pay) should be based on reduced salary.

for example if your salary is £28,900 a year and you get £200 a month Childcare vouchers through salary sacrifice salary, your annual salary is reduced by £2400 so it is now £26,500.

This means that your weekly pay (based on 53 week tax year) is £500 a week, so holiday pay would be based on that rather than £545 which would be your weekly pay based on your original salary of £28,900.

It's not the same as a simple deduction.