Sir, – Women on maternity leave face a quiet penalty in our pension system. Tax relief on pension contributions is based on a percentage of salary. Maternity pay is often a reduction of ordinary salary, so pension contributions made while on maternity leave attract less relief, even when pension contributions have not changed.
The result is that women lose out on pension building when they are already earning less, on top of facing some of the highest childcare costs in the EU once they return to work.
Allowing pension contributions during maternity leave to be relieved against pre-leave salary would have a real effect on women’s long-term financial security. – Yours, etc,
AOIFE COLL,
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Sandymount,
Dublin 4.
