# PAYE, NI TAX Calculation explanation

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I figured that from £2076.92 - (4 x £120) = £1596.92 x 0.04 = £63.88

£ 120 might be the weekly pension limit, and above that might be the pension being deducted.
• Forumite Posts: 3,977
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edited 16 June at 8:28PM
mazibee said:
I figured that from £2076.92 - (4 x £120) = £1596.92 x 0.04 = £63.88

£ 120 might be the weekly pension limit, and above that might be the pension being deducted.
There have been ( and may still be) pension schemes that base the contribution on salary less the Lower Earnings Limit (LEL)
However the LEL this year is £123 but was £120 last year.
I would still recommend speaking to payroll for a full explanation.

EDIT   See next post
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chrisbur said:
mazibee said:
I figured that from £2076.92 - (4 x £120) = £1596.92 x 0.04 = £63.88

£ 120 might be the weekly pension limit, and above that might be the pension being deducted.
There have been ( and may still be) pension schemes that base the contribution on salary less the Lower Earnings Limit (LEL)
However the LEL this year is £123 but was £120 last year.
I would still recommend speaking to payroll for a full explanation.
I think the op is referring to the auto enrolment earnings threshold limit, not NI limits.

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
• Forumite Posts: 3,977
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chrisbur said:
mazibee said:
I figured that from £2076.92 - (4 x £120) = £1596.92 x 0.04 = £63.88

£ 120 might be the weekly pension limit, and above that might be the pension being deducted.
There have been ( and may still be) pension schemes that base the contribution on salary less the Lower Earnings Limit (LEL)
However the LEL this year is £123 but was £120 last year.
I would still recommend speaking to payroll for a full explanation.
I think the op is referring to the auto enrolment earnings threshold limit, not NI limits.

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
Yes that explains it.
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