Pension contribution net pay vs salary sacrifice

eljapo4

Hi - trying to understand better how much take home pay i'd have if I switch how I pay my current pension contributions to salary sacrifice. Current setup is this:
Basic Pay £2608.33 (monthly)
Pension £62.60 (think it’s 3%)
Other deductions £671.40
Net Pay £1874.33

I've been told that I'll save on national insurance and also get the company saving
So you pay 3% of salary - £78.25
You will now save 12% of this in NI so £9.3
So your pension deduction will look like £53.21
In addition your pension contribution of £78.25 will be increased by 13.8% to £89.04 so an extra £10.79 each month to Provider.

Really what i'd like to know is if I swap to salary sacrifice pension contributions what will my take home pay be. Can anyone on here help crunch the numbers? Apologies if this is a silly request but I can't grasp the numbers at all.

Triumph13

So is that £62.60 what you have been advised is the net cost to you, rather than the deduction showing on your payslip? If it's 3% then your payslip should show the £78.25 if you're in a net pay arrangement.
The impact on your payslip will be it will go up by 12% of the £78.25 as you no longer pay NI on this amount.
The impact on your pension will be an increase of 13.8% in the contribution if your employer hands over all their savings.

eljapo4

The £62.60 is the deduction shown on my payslip at the minute. So going by what you have said if I enter the salary sacrifice scheme my net take home pay will increase by 12% of the £78.25 (£9.39) and my pension will increase by 13.8%. Win win from my perspective then :j

xylophone

https://www.ft.com/content/7941c1e6-f03d-11e5-aff5-19b4e253664a