auto-enroement & salary sacrifice

kend · 25 January 2016 at 10:34AM

I am employed in a small firm with 5 eligible employees for auto-enrolment with a staging date of January 2017.

When I joined the company some ten years ago I wanted to make contributions into pension and it was agreed with my employer this would be done through salary sacrifice with the deduction from my salary being paid into my own personal pension plan.

My pension does not meet auto-enrolment requirements so I will join the company scheme.

My question - on what salary figure should my employer base the empoyer/employee contributions, salary before or after current salary sacrifice deduction. ? I can't find a definitive answer .

Thanks.

Paul_Herring · 25 January 2016 at 12:22PM

At a minimum it should be a percentage of the gross wages between £112 and £815 per week: https://www.nestpensions.org.uk/schemeweb/NestWeb/public/helpcentre/contents/what-are-qualifying-earnings.html

So, if you're getting £120 per week (gross) 1% of £8 (£120-£112) is 8p per week from both you and your employer.

And 'gross' for this means your current salary before the sacrifice, if you're stopping the sacrifice.

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By the way, under which requirement does your current scheme fail?

auto-enroement & salary sacrifice

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