4k a year less salary

Matt_22

If a job is 4k a year less salary how much per week roughly after tax would this be? Thank you

El_Torro

It depends on what the initial salary was. The more you earn the more tax you pay. It also depends on what percentage of the salary goes into pension contributions, what tax code both salaries are on, etc…

You can put the two figures here and see for yourself: https://www.thesalarycalculator.co.uk/salary.php

Matt_22

Thank you the lower paying job is lgps. I think that also means you pay less tax. So hard to work out

El_Torro

Do you mean that the lower salary is part of a government pension scheme and the higher one is not? You won’t pay less tax just because you are in a government pension scheme. There is an employee contribution, which will reduce your take home pay. That employee contribution may or may not be less than the employee contribution for the higher salary. 

Generally speaking a DB pension is a lot more generous than a DC pension.

Matt_22

Thanks it yes
 I thought lgps contributions where taken off you wage before tax? So gives tax relief?

El_Torro

When you join a DB pension scheme (for example LGPS) you don't get any immediate benefit from it. Actually it costs you money as you are paying a percentage of your salary into the scheme. Exactly what percentage you pay in depends on your job and the specific scheme. You can't claim tax relief on your contribution. 

If you compare such a pension to a DC scheme, one where you merely have a pot of money to retire on, you will probably find that the guaranteed income that LGPS gives you when you retire will be very valuable, and would require a very large contribution to a DC scheme to get something equivalent. 

I'm just guessing here but if you are comparing a private sector job to a public sector job (hence the £4k difference) you may find that the public sector job has a lower salary but the pension benefits more than make up for the difference.

Matt_22

Yes that it.  I thought I read they take your lgps contributions off before tax so you pay slightly less tax on your salary. Yes it's private sector higher salary. Public sector less

EnPointe

Matt_22 said:

If a job is 4k a year less salary how much per week roughly after tax would this be? Thank you

what is the salary ? 
what, if any,  are the varible pay elements ?
how are Pension contributions taken ? what is the rate of employee pension contribution?

Matt_22

36k Vs 32k

Matt_22

Pension private is 4% percent employee 3% employer
Public is 6.5% employee. There is also a £32 a month tool allowance

EnPointe

is the lower paid role in the Public sector ? what pension  is on offer at the lower paid role ?   would your typical working  hours include evenings  and weekends ?