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Salaried at minimum wage question.
diamonds
Posts: 6,048 Forumite
Now I dont know much about the new pension thing apart from the new advertising blitz that has cost the taxpayer millions (why are we paying for this when they should have enforced companies to inform us ?).
I'm making a enquiry as for once I was stumped when asked a question, I could not tell them anything in the slightest, other than "I dont think legally they can do that", employer insists they can.
Person is salaried full time at minimum wage for 35 hours a week, but this new 8% split...
What are the % between employee, employer & tax ?
Effectively the employer is reducing salary by the same % of employers contibution, but this means the employee will be on less than minimum wage.
Can anyone give me the heads up if they are in a similar situation or know anything in this senario & what specific legislation is involved, im not reading the whole of Pension Acts 2008/2011 lol.
Thanks.
I'm making a enquiry as for once I was stumped when asked a question, I could not tell them anything in the slightest, other than "I dont think legally they can do that", employer insists they can.
Person is salaried full time at minimum wage for 35 hours a week, but this new 8% split...
What are the % between employee, employer & tax ?
Effectively the employer is reducing salary by the same % of employers contibution, but this means the employee will be on less than minimum wage.
Can anyone give me the heads up if they are in a similar situation or know anything in this senario & what specific legislation is involved, im not reading the whole of Pension Acts 2008/2011 lol.
Thanks.
SO... now England its the Scots turn to say dont leave the UK, stay in Europe with us in the UK, dont let the tories fool you like they did us with empty lies... You will be leaving the UK aswell as Europe
0
Comments
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Firstly, the contribution rates are being phased in see here
Once fully implemented (2018) your employer will have to pay at least 3% of your qualifying earnings - not total earnings, but this year, it would be your earnings over £107 pw (£5,564pa).
My understanding is that your pay cannot be reduced to a level below the NMW. You can be paid NMW and then have to pay your own contribution out of that, but your gross pay each week must be your hours x the NMWWarning ..... I'm a peri-menopausal axe-wielding maniac0 -
Hi there diamonds,
The contributions are based on band earnings so those on minimum wage shouldn't really be affected that much.
It has been designed so that those on minimum wage don't end up taking home much less than they are on.0
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