Salary sacrifice

MallyGirl

SCO said:

I would sacrafice 10% to 15%

you still need to ask your employer how they handle it as each one is different. I can vary my pension contribution as often as I like so I have a base salary which is what gets used in any calculations like pay rise etc. It is also used as the basis for death in service etc.
for example (made up figures):
Base salary = £60,000 
pension sacrifice 50% = £30,000
my P60 would show £30,000 gross but my pay rise would be 10% of £60,000 and my 5x death in service would be 5x£60,000.

some employers would only let you set the sal sac once a year and would base their calculations on the £30,000 figure. You need to ask what your employer does.

nicknameless

Also some employers also contribute some of their NI savings.  My partner a basic rate taxpayer uses SS and her employer gives half of their NI contribution savings (6.9% IIRC).  So she is effectively getting relief of approx 39% on contributions.  No brainer.

RogerPensionGuy

nicknameless said:

Also some employers also contribute some of their NI savings.  My partner a basic rate taxpayer uses SS and her employer gives half of their NI contribution savings (6.9% IIRC).  So she is effectively getting relief of approx 39% on contributions.  No brainer.

I think employers should give back at least 10% back from their 13.8% saving if not 12% and a great employer could give back all 13.8% and really look after the most important and valuable part of their business. 

Dazed_and_C0nfused

RogerPensionGuy said:

nicknameless said:

Also some employers also contribute some of their NI savings.  My partner a basic rate taxpayer uses SS and her employer gives half of their NI contribution savings (6.9% IIRC).  So she is effectively getting relief of approx 39% on contributions.  No brainer.

I think employers should give back at least 10% back from their 13.8% saving if not 12% and a great employer could give back all 13.8% and really look after the most important and valuable part of their business. 

A shareholding employee then 😉

MallyGirl

RogerPensionGuy said:

nicknameless said:

Also some employers also contribute some of their NI savings.  My partner a basic rate taxpayer uses SS and her employer gives half of their NI contribution savings (6.9% IIRC).  So she is effectively getting relief of approx 39% on contributions.  No brainer.

I think employers should give back at least 10% back from their 13.8% saving if not 12% and a great employer could give back all 13.8% and really look after the most important and valuable part of their business. 

That would be nice. OH gets the full 13.8% from his and I get none of it from mine.

eastcorkram

MallyGirl said:

RogerPensionGuy said:

nicknameless said:

Also some employers also contribute some of their NI savings.  My partner a basic rate taxpayer uses SS and her employer gives half of their NI contribution savings (6.9% IIRC).  So she is effectively getting relief of approx 39% on contributions.  No brainer.

I think employers should give back at least 10% back from their 13.8% saving if not 12% and a great employer could give back all 13.8% and really look after the most important and valuable part of their business. 

That would be nice. OH gets the full 13.8% from his and I get none of it from mine.

I don't get any of it either. I did ask, and was just told, no, we don't do that. 

vacheron

MallyGirl said:

RogerPensionGuy said:

nicknameless said:

Also some employers also contribute some of their NI savings.  My partner a basic rate taxpayer uses SS and her employer gives half of their NI contribution savings (6.9% IIRC).  So she is effectively getting relief of approx 39% on contributions.  No brainer.

I think employers should give back at least 10% back from their 13.8% saving if not 12% and a great employer could give back all 13.8% and really look after the most important and valuable part of their business. 

That would be nice. OH gets the full 13.8% from his and I get none of it from mine.

We get 25% of our employers NI from our employer matched contributions, but 100% of their 13.8% saving on any AVC's we make.

.... or at least I shoud say that our prevous (good) employer offered that. Our current employer wouldn't give us the steam off their pi..... "urine" if they could get away with it, but they are obliged to as we TUPE transferred to them a couple of years ago.

For that reason I am currrently sacrificing 50% of my salary as AVC's each month, and I hope it makes them sick every time they have to pay it!    

Albermarle

eastcorkram said:

MallyGirl said:

RogerPensionGuy said:

nicknameless said:

Also some employers also contribute some of their NI savings.  My partner a basic rate taxpayer uses SS and her employer gives half of their NI contribution savings (6.9% IIRC).  So she is effectively getting relief of approx 39% on contributions.  No brainer.

I think employers should give back at least 10% back from their 13.8% saving if not 12% and a great employer could give back all 13.8% and really look after the most important and valuable part of their business. 

That would be nice. OH gets the full 13.8% from his and I get none of it from mine.

I don't get any of it either. I did ask, and was just told, no, we don't do that. 

For a period I worked for a very large company, owned by one of the richest men in the UK ( currently trying to buy Man Utd) . When they switched, they kept all the employer NI savings for themselves ( these football clubs are expensive !)