Employer taking it's contribution from my flex bens

jackw5150

My employer has a workplace pension scheme to which I contribute 14% of my basic salary via salary sacrifice. My understanding was that my employer is obliged to contribute 1% (for reference it has over 3,000 employees) however whilst on my benefits portal it shows an employer contribution, the reality is that only 14% goes to my pension fund.

I have queried this with HR and they say that is correct and that the 1% employer contribution comes out of my 15% flex benefit. Is that how it works as it sounds bonkers?

I spoke with someone at the pensions advisory service and they agreed with me but didn't seem 100% sure. Does anyone else have any insight on who is correct?

Thanks

greenglide

It could be right. Under salary sacrifice all contributions are employer contributions but notionally they will be split into the bit that the employer pays and the bit that you do.

Are you saying that the salary is reduced by the 14% contributions - difference between gross pay and "notional" pay before the salary sacrificed. It will be the difference between the HR system says and what the payroll says. Salary sacrifice does not need to show on the payslip.

dunstonh

By doing in salary sacrifice, there is only an employer contribution. Is the total of this yours and theirs or just yours?

Have they reduced your pay by 13%, 14% or 15%

Triumph13

You're not, by ant chance, looking at a 'total benefits statement' rather than a breakdown of your salary? Some employers (including mine) show the value of all employer-provided benefits such as employer's pension contributions rather than just 'traditional' salary to come to a value for your 'total rewards package'. Does the total or everything on the page add up to more than your notional salary?