What is monthly minimum wage?

comeandgo

Comms69 wrote: »

Whilst that's fine and everything. Typically jobs on minimum wage don't allow much to be put away into pension.


What will you live on?

I think you misunderstand. A person can only pay into a work pension a value that does not leave them with less pay than minimum wage for the time they work.

Xbigman

I read it as the OP earns more than the minimum wage and wants to salary sacrifice down to it.




Darren

pensionConfusion

Comms69 wrote: »

What will you live on?

Min. wage + partner's pay
I had started a thread on Pensions forum and this question came up.

pensionConfusion

Xbigman wrote: »

I read it as the OP earns more than the minimum wage and wants to salary sacrifice down to it.

Darren

Yes. I am in a position where I can put away a healthy amount in savings/investments.
I think reducing take home pay will be more profitable.

Xbigman

comeandgo wrote: »

I think you misunderstand. A person can only pay into a work pension a value that does not leave them with less pay than minimum wage for the time they work.

That's not entirely correct. My own employers allow salary sacrifice via AVC's down to £8400 per year (possibly last years figure) which is just above the point where NI is payable. It's to ensure workers can access state benefits and state pension by insisting on a tiny NI contribution each year (I am aware most state benefits are accessible from the LEL but apparently not all). The £8400 is a hard figure not adjusted down for part time workers like myself.
Money paid into a salary sacrifice scheme is still a payment.


Darren

Dox

pensionConfusion wrote: »

Yes. I am in a position where I can put away a healthy amount in savings/investments.
I think reducing take home pay will be more profitable.

If you are making personal contributions, you don't need to worry about taking your pay below the minimum wage. Your employer is required to pay you at least the minimum wage, but if you then choose to pay pension contributions that's your call; they have met the legislative requirements.

There is only a minimum wage issue if 'your' contributions are paid by salary sacrifice and the amount you sacrifice reduces your gross pay to below NMW.