Student Loan repaymts & pension Contributions

bridgend_girl

Last year I made a lump sum pension contribution to my employer's pension plan by cheque - not through payroll. Should this come off my annual gross salary when calculating student loan repayments for the year? I thought it should based on info on this site but student loan company says pension contributions are not relevant? Any help appreciated please...:D

Paige_Turner

The amount of pension contribution would only be deducted from your salary if it was a salary sacrifice contribution - ie your employer made the contribution on your behalf instead of paying you a full salary each month.

I have recently changed my contributions to salary sacrifice and that has reduced my student loan as these repayments are based on your top line salary.

I'm in Scotland btw, not sure if it's different in England.

bridgend_girl

Salary sacrifice not an option for me. I'm in Wales not sure this relevant ? Martin's loan guide appears to say different to loan company info....confused

CLAPTON

Student loan payments are based on gross salary;
so pension contributions make no difference (just like on NI) unless of course the payment is made via salary sacrifice.

bridgend_girl

oh well worth an ask! LOL.

Thanks for replies