Pension contribution - was is included in the £40k yearly limit?

bigadaj

Bootsox wrote: »

Sorry, can you explain further.

..or can you link to a reference to this technicality?

The minimum wage is a legal requirement, paying below this is illegal and makes the employer subject to prosecution.

The living wage is voluntary at a slightly higher level, so accepted good practice but not enforceable.

Bootsox

bigadaj wrote: »

The minimum wage is a legal requirement, paying below this is illegal and makes the employer subject to prosecution.

The living wage is voluntary at a slightly higher level, so accepted good practice but not enforceable.

So, does that make the answer to my original query "yes"?

If someone was sailing close to the wind re maxing out via salary sacrifice, could they exploit the government's (possible) typo in that they refer to cash earnings not going below National Minimum Wage rates?

bigadaj

Bootsox wrote: »

So, does that make the answer to my original query "yes"?

Well there's no typo.

Only the minimum wage is legally enforceable, the living wage is irrelevant in this context.

neilvw

bigadaj wrote: »

Well there's no typo.

Only the minimum wage is legally enforceable, the living wage is irrelevant in this context.

Bootsox was talking about the National Living Wage, which is legally-speaking a premium to the National Minimum Wage for those aged 25+, and hence compulsory. For the avoidance of doubt, the National Minimum Wage for over-25s = the National Living Wage. So the potential loophole identified by Bootsox does not exist.

The Living Wage is totally separate and voluntary, with no statutory status.

neilvw

Bootsox wrote: »

Sorry, can you explain further.

..or can you link to a reference to this technicality?

The National Minimum Wage (Amendment) Regulations 2016

“The national living wage

4. The single hourly rate of the national minimum wage for the purposes of section 1(3) of the Act (“the national living wage rate”) is £7.20.

http://www.legislation.gov.uk/ukdsi/2016/9780111141625

Bootsox

neilvw wrote: »

Bootsox was talking about the National Living Wage, which is legally-speaking a premium to the National Minimum Wage for those aged 25+, and hence compulsory. For the avoidance of doubt, the National Minimum Wage for over-25s = the National Living Wage. So the potential loophole identified by Bootsox does not exist.

The Living Wage is totally separate and voluntary, with no statutory status.

Cheers, that was exactly the nature of my query.