How to calculate gross income?

sheramber

NotRichAtAll said:

40 hours per week x £1 = £40 gross per week x 52 weeks = £2080 gross pay per year
gross is b4 any deductions.

Which is why you need a new contract if paying for something by salary sacrifice .

Sacrifice means you give up some of your salary so your gross slary is less. 

Your employer pays that amount into the salary sacrifice scheme on your behalf

You do not get that money so your gross income is now less.

zagfles

Usually with sal sac you get a negative amount in the payments column and nothing in the deductions column, but payslips can be misleading sometimes. 

You can work out for certain whether it's sal sac by working out how much you got charged NI on. Divide the NI on your payslip by 0.08 and add £242. That's what you got charged NI on, and if that's your salary after the pension conts are taken off it's sal sac. If it's your pay before the pension is taken off, it's not. 

(note this won't work if you get paid over the NI UEL £967 but you look to be nowhere near that)

Yorkie006

sheramber said:

Yorkie006 said:

My payslip is a bit weird:
It states hours work and the hourly rate and the total
just below that is states the amount that went into the pension
and then underneath that the total payment but this total is the same as the first line (ie hours x rate), it doesn't deduct the sacrificed amount. Then the sacrificed amount is listed again in the deduction section (alongside tax, NI).
So if anyone just looks at the total gross income/week it looks like I earn the exact same amount now as I was earning before the salary sacrifice.
My old contract states hourly rate plus number of contracted hours, but the numbers are not accurate, the contract is old and the hourly rate has changed since then.
As far as I know, nobody received a new contract to reflect the salary sacrifice.

That doesn't look like salary sacrifice

It is though, the NI amount deducted is now lower than before and take home pay went up.