How to work out pensionable pay.

Anomaly100

My husband's salary includes a car allowance. He also claims childcare vouchers. He pays 6% pension contributions.

I'm trying to do a spreadsheet to work out the affect of increasing pension contributions on his take home pay but I'm struggling because I don't know if I should be including the car allowance for this. I know I need to deduct the childcare vouchers from his gross pay but not sure what next. I would really appreciate some help?

Triumph13

You would really need to look at the brochure for his particular pension scheme as there are no hard and fast rules on this. Some work on a percentage of 'notional' salary ie before any sacrifices, others don't.

nearlyrich

Our company takes 50% of available bonus into the calculation even if you don't earn bonus so you need to know what the % is based on..also things like salary sacrifice can work differently in different companies.

Anomaly100

Thanks for that I will make him get the details.

xylophone

Thanks for that I will make him get the details.

"Ve haf vays......::eek:

http://www.mycompanypension.co.uk/What-Earnings-Are-Used-in-Calculating-My-Pension-Active-Members-DB
might be worth a look.

Does your husband have a scheme booklet/remuneration fact sheet from his employer?

bilbo51

I suspect that the childcare vouchers and car allowance are not included in the pensionable pay.


However - you can check this from his payslip.


Look at the amount he is deducted for pension each month.


You say that this is 6%.


So divide this amount by 6%.


The resulting figure is his pensionable pay.