is a scheme whereby employees at a particular company are paid their regular salary for a fixed period of time once they either leave or retire. These payments are substituted in place of a lump sum payment and are often preferred as they enable the employee to continue profiting from other company benefits such as drug, pension, dental, and life insurance, among various other schemes.
Salary Continuance is a written agreement between an employer and an employee to provide the latter with a series of payments that represent either a portion of or the entire amount of their salary. A salary continuation plan can also be implemented in high-risk environments where a worker is in danger of being injured in the line of duty (Sam, 2023).
Salary continuance could make you eligible to keep receiving the aforementioned benefits from the company. If you believe you will be able to find work quickly or if the company is in danger of going bankrupt, a lump sum payment may be preferable.
However, a lump sum payment will not constitute earned income and hence might serve as a better alternative depending on your needs.
Ultimately, deciding which option is best for you and your career is a personal decision that can vary on a case-by-case basis. Paying close attention to your financial situation and needs will help you decide which option is best suited to help you navigate the next steps of your future.
