percentage contributions calculations from wage to pension

A

Andynb

Registered User
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Hi Quick question (hopefully),

I was looking at my wageslip and at the pension contributions that are taken out. Everyone in the scheme has to pay 1% and that 1% is marked on my wageslip (i pay extra also into my pension, and company match upto 12%), the extra is marked down has an AVC. But this 1% doesn`t reflect my gross wage, when taken down to 1%. Should it be? or could some deductions been taken out before hand?
Also i get paid extra for being oncall and bonus at the end of the year should that 1% also reflect this? Or is this subjective of the HR where i work?

I have emailed HR where i work, but wanted to learn a little more so have abit more info to ask.

Thanks Andy
 
It all depends on the rules of the particular pension scheme. The pensionable salary is usually based on your basic pay, so it's likely less than your gross pay.
 
Usually the pension deduction is based on ieither a) your basic wage only or b) a calculated scheme wage for occupational pensions. Older schemes had some or all of the state pension deducted, for example- you will have to see what HR or the trustees tell you for yours.

Revenue guidelines are different, so the age related % you can get tax relief on is everything you included above- essentially everything you pay USC on in your payslip.
 
Company match up to 12%, that's a great deal. I hope your taking all of it.
 
Yes taking the full 12%. Would be madness not too.

So spoke to HR, and yes my mistake. The percentage is taken over the 12 months, so the percentage in my wage slip is a 12th of a percentage.
 
Andynb said:
Yes taking the full 12%. Would be madness not too.

So spoke to HR, and yes my mistake. The percentage is taken over the 12 months, so the percentage in my wage slip is a 12th of a percentage.
Click to expand...
You mean that the "mandatory" 1% p.a. employee contribution is collected at a rate of 1/12th of a percent (0.08333...%) p.m.?
 
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