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What counts as pensionable pay?
sheaoc
Posts: 4 Newbie
I receive a salary of £ 1775 per month plus a shift allowance of time and .33%.
Should my pensionable earnings include my shift allowance for at the minute it is only calculated from £1775 per month.
I am currently in the government workplace pension which my employer only pays the bare minimum which is required.
So basically im looking to know should my shift allowance be calculated in with my salary for calculating my workplace pension?
Surely your shift allowance is part of you basic pay am i correct?
Should my pensionable earnings include my shift allowance for at the minute it is only calculated from £1775 per month.
I am currently in the government workplace pension which my employer only pays the bare minimum which is required.
So basically im looking to know should my shift allowance be calculated in with my salary for calculating my workplace pension?
Surely your shift allowance is part of you basic pay am i correct?
0
Comments
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It will be whatever your employer states in your contract of employment or staff handbook.0
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is shift allowance part of your basic pay?0
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Which scheme are you with?
Example
https://www.nowpensions.com/help-centre/faqs/general-information/pensionable-earnings-2
What is defined in your contract as "pensionable earnings"?0 -
My basic pay is £14000 but I earn £34000 inc commision etc but my employer pays there contributions on my basic at 3% looking at the reg should it be 4% as it's not 85% of my total wage0
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According to the Pensions Regulator:
You calculate contributions based on gross earnings. You don’t include bonus, overtime, commission or certain staff allowances (such as shift pay or relocation allowance) in the calculation.
However, you need to look at your contract as some employers will include this but they do not have to for automatic enrolment purposes.
I have worked in the accountancy profession for 13 years. I have specific responsibilities relating to payroll, automatic enrolment and CIS. The comments I make are just my opinion and are for discussion purposes only. They are not professional advice and you should not treat them as such.0
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