4k a year less salary

El_Torro

Matt_22 said:

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

Legally the minimum total contribution into a workplace pension needs to be at least 8%, with the employer paying at least 3% of this. So if you double check you'll probably find that the private pension is 5% employee and 3% employer. 

Matt_22

Yes lower paid public sector. Lgps. 37 hours a week.  Private 38.75 hours 3% employer contributions 

Matt_22

Is 1% made up for tax relief or something?

Savvy_Sue

El_Torro said:

Matt_22 said:

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

Legally the minimum total contribution into a workplace pension needs to be at least 8%, with the employer paying at least 3% of this. So if you double check you'll probably find that the private pension is 5% employee and 3% employer. 

Actually it can be 7% - there are (I think) three different ways of calculating the earnings on which pension deductions are made. When the total deduction is 8%, then a 'flat rate' figure can be used, ignoring overtime and (I think) one-off deductions. What the employee is actually paid in a given month isn't used to calculate the deductions. 

However, an employer can go for 7% - 3% from them plus 4% from employee, as long as the earnings used for the calculation include whatever the employee is paid that month, including any overtime and removing any deductions. 

Although https://www.nestpensions.org.uk/schemeweb/helpcentre/contributions/calculating-contributions/how-to-calculate-contributions.html doesn't show the 7% vs 8% requirements, I'm sure if you drill down you can find it.

I can't remember what the third method is, but we used the 7% one! It is less common than the 8% one, I believe, and the documentation NEST used to produce for employees didn't always make this clear.  

Matt_22 said:

Is 1% made up for tax relief or something?

No. 

Marcon

Could be 9% depending on the earnings on which contributions are based!

Good clear explanation here: https://www.nestpensions.org.uk/schemeweb/helpcentre/contributions/calculating-contributions/calculate-contributions-using-certification.html

Matt_22

It is peoples pension sure was 3% employer

Savvy_Sue

Matt_22 said:

It is peoples pension sure was 3% employer

It's likely they'll have a similar page. The calculation rules apply to all pension providers, and all employers: 3 different possibilities. 

Matt_22

So I got my pay slip today it works out £50 a week take home pay less. 

Matt_22

But is 10days more holidays a year. Sick pay if off. And lgps.