Salary sacrifice - Employer NIC savings paid into pension

MallyGirl

GazzaBloom said:

MallyGirl said:

GazzaBloom said:

Albermarle said:

 I feel I am being short changed and the company are trousering the saving and being tight fisted

Most employers trouser all of it, so that would make your employer the opposite of tight fisted.

Really? That's quite mean, the more you salary sacrifice the more they save and trouser.

It is 50:50 in the Mally household. My employer does not pass on their NI saving whereas my OH's employer does. 

@MallyGirl are they passing on the extra 1.25% this year?

I'll ask him

Bemma

My employer pays in different ER NIC rates into our pension for regular pay and bonuses.
For regular SS we got just over 1/2 of the ER NIC, 7%
For bonus SS we got it all, 13.8%

This year those rates went up to 8% and 15.05%.  I think it is quite unusual to have split rates, I've never heard of it elsewhere. I count myself very lucky to have this extra uplift.
I don't know why there are different rates for regular and bonus pay!  Maybe as bonuses are once a year, the admin is lower so the company thought they would be more generous?

GazzaBloom

Bemma said:

My employer pays in different ER NIC rates into our pension for regular pay and bonuses.
For regular SS we got just over 1/2 of the ER NIC, 7%
For bonus SS we got it all, 13.8%

This year those rates went up to 8% and 15.05%.  I think it is quite unusual to have split rates, I've never heard of it elsewhere. I count myself very lucky to have this extra uplift.
I don't know why there are different rates for regular and bonus pay!  Maybe as bonuses are once a year, the admin is lower so the company thought they would be more generous?

Interesting

westv

GazzaBloom said:

westv said:

Does this mean then that any employer using sal sac that is paying in less than their NI saving isn't actually spending any money on pension contributions - aside from admin costs?

No. My employer is paying and agreed company contribution as a percentage of salary, over and above my own personal percentage contribution percentage of salary but they also pay an extra amount based on the employer's NIC they save on my personal contribution that I salary sacrifice as they would pay this to government if I didn't salary sacrifice, so it's a "saving" to them which they pass on.

I was referring to employers that only pay 13% or whatever their current NI saving is.

sausage_time

My employer also pay the NIC saved, but missed the change in April.  They then paid double the difference in May.  June may be correct!

Bimbly

I think it's perfectly fair for you to ask if it was a conscious decision or an error.

My employer does not pass on the employer's NI saving. It would be amazing if they did, but nope.