Pension Salary Sacrifice

Hi,

I currently have a pension at work where my employer contributes 5% into my pension pot. With the changes taking place i now contribute 2% via salary sacrifice to meet the required targets for now and will contribute 4% next april when the next changes occur.

In terms of salary sacrifice how does this work. We receive a yearly bonus each year so will 2% also be deducted from that amount or does it only apply to salary?

Many Thanks

John

Comments

  • El_Torro
    El_Torro Posts: 1,451
    First Anniversary Name Dropper First Post
    Forumite
    I pay into my pension through salary sacrifice. I also get an annual bonus, none of the bonus gets sacrificed. My employer also doesn't contribute a percentage of my bonus to my pension.


    I imagine yours will work the same as mine, though to be sure you can always ask your payroll department.
  • Brynsam
    Brynsam Posts: 3,643
    First Anniversary Name Dropper Combo Breaker First Post
    Forumite
    Depends entirely on what you've agreed with your employer. Check with HR or payroll as you aren't sure.
  • Paul_Herring
    Paul_Herring Posts: 7,481
    Name Dropper Photogenic First Post First Anniversary
    Forumite
    In terms of salary sacrifice how does this work. We receive a yearly bonus each year so will 2% also be deducted from that amount or does it only apply to salary?

    Employer's choice/discretion. Ask them.

    I asked my employer to sacrifice the whole of the recent bonus I got (in addition to the regular amount.) Had I not asked, none of it would have been.
    Conjugating the verb 'to be":
    -o I am humble -o You are attention seeking -o She is Nadine Dorries
This discussion has been closed.
Meet your Ambassadors

Categories

  • All Categories
  • 342.5K Banking & Borrowing
  • 249.9K Reduce Debt & Boost Income
  • 449.4K Spending & Discounts
  • 234.6K Work, Benefits & Business
  • 607.1K Mortgages, Homes & Bills
  • 172.8K Life & Family
  • 247.4K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.8K Discuss & Feedback
  • 15.1K Coronavirus Support Boards