Work Contract

Sinker

Hello!
I am new in Ireland and I got my first job here. Initially a contract but immediately changed to a permanent role. However, the contract for the permanent position states that the company will start paying for my health insurance after the first 6 month of provisional period and the same goes for the pension: "The Company will contribute an annual matching contribution of a maximum of 3% of your salary after initial six month probation period"

When complaining about that, I received an answer that this is a common practice in Ireland. I was wondering is you can give me your opinion on that. Is this true? Does everyone have to wait for 6 months until they receive health insurance and pension contribution? So, when you change jobs you don't have health insurance for 6 months!
And what about pension contribution? Is that so low? How much should I contribute?
I'm so confused! :eek: Sorry for all these questions.. can you please help???

herya

It's fairly normal for your pension contribution to start after 6 months or even a year. Health cover is usually immediate - not always - but if it's not you can always pay for it yourself for these 6 months. Some companies don't give you either, you pay for your own.

leeroybrown

In my experience I'd expect health insurance to be immediate. If it isn't then you should find out if you can join the company policy immediately but pay yourself or start a policy with the same insurer and transfer to the company scheme once you're eligible.

The pension delay is fairly common. My current employer allows immediate entry but my previous employer required that employee be with the company for two years before they could join the scheme. Your employer will have a fixed percentage of your salary that you'll need to contribute in order to avail of their contribution (I'd guess around 5%). Ask them what the percentage is. This contribution from your salary currently qualifies for tax relief at the marginal rate.

Mrs OBumble

Offering pension and health insurance is by no means universal in Ireland. Count yourself lucky.

You should check the terms of the health cover pretty carefully: unless you're transferring from another Irish health insurer, usually you cannot claim for anything except accidents in the first however long (2 years I think) - AND you cannot claim for pre-existing conditions for the first five years. That's "pre-existing" not "pre-diagnosed" too: depending on your age, a fair number of conditions could be considered to be pre-existing. Some people here choose not to have health insurance at all, but to "self-insure" for the minor stuff and trust that the public system will deal with the major stuff.

Thoie

6 months pension delay is pretty normal, and some places don't contribute anything to your pension ever. All employers must offer pension facilities though (PRSAs, for example), though they are not obliged to pay their own money into it.

Likewise, health insurance is usually a "perk", not a right. Some companies will pay for it for you (usually taxed as a benefit in kind), others will make a group scheme available for you to pay into.

The usual reason for the 6 month delay is that you're often on probation for the first 6 months, during which time the contract can be terminated by either side with fairly minimal notice. Most companies don't bother going to the hassle of setting up things like pensions and health insurance until they know you're staying.

qwertz

OP, you don't specify where you are from and maybe your choice of words was just a but unfortunate but complaining after just starting at a new job usually doesn't get you very far. Next time try inquiring or asking for clarification instead

Eoin

Sinker wrote: »

So, when you change jobs you don't have health insurance for 6 months!
And what about pension contribution? Is that so low? How much should I contribute?

If you were to change jobs, then you might be able to continue the policy in your own name.

The pension contribution is OK, and as others have said, it's by no means mandatory or universal. I'd say contribute to the pension as much as you can afford to. Apparently when the markets are really weak is the best time to be paying into your pension fund. It's also very tax efficient.