Employer pension contrabution

hotandy123456789

Hello folks, could anyone tell me what percentage my employer is bound to contribute  if i am paying 45 percent  of my  earnings? Any help wluld be appreciated,  thanks in advance.

Dazed_and_C0nfused

Are you in an auto enrolment scheme?

Grumpy_chap

hotandy123456789 said:

Hello folks, could anyone tell me what percentage my employer is bound to contribute  if i am paying 45 percent  of my  earnings? Any help wluld be appreciated,  thanks in advance.

The statutory minimum contributions are usually 3% employer plus 5% employee so that the minimum total contribution is 8%.  If the employer contributes more than 3% then it can allow the employee contribution to reduce so long as the combined minimum is achieved at 8%.

Employment contracts may require the employer (and the employee) to pay more than the statutory contributions.  Sometimes, that takes the form of matching the employee contributions up to a certain cap.  What does your contract of employment say?

If you are paying 45%, is that through Salary Sacrifice?  If so, the effect is that is all treated as employer contribution.

Dazed_and_C0nfused

But with auto enrolment schemes the 3% can be after the earnings threshold, doesn't have to be 3% of all the earnings.

Marcon

hotandy123456789 said:

Hello folks, could anyone tell me what percentage my employer is bound to contribute  if i am paying 45 percent  of my  earnings? Any help wluld be appreciated,  thanks in advance.

Statutory minimum is 3% of gross earnings between £6,240 and £50,270 for 2022/23.

The following types of pay need to be included in qualifying earnings calculations:

• salary or wages
• overtime
• bonuses
• commission
• statutory sick pay
• statutory paternity, maternity or any other kind of family leave
• adoption pay
• holiday pay

You may have a contractual right to more, but you'd need to check your terms of employment to be sure.

JoeCrystal

Really? My employer disregards the first £6,396 rather than £6,240. We were surprised to see a drop in our employee and employer contributions. It is still £6,240 right?

Dazed_and_C0nfused

These are the current years figures,

https://www.thepensionsregulator.gov.uk/en/employers/new-employers/im-an-employer-who-has-to-provide-a-pension/declare-your-compliance/ongoing-duties-for-employers-/earnings-thresholds