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Post by w000161buster on Mar 23, 2021 0:06:45 GMT
Evening all, does anybody know the rate that is used by the companies to calculate the Workplace Pension contribution please ?
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Post by Derek Moore on Mar 29, 2021 7:55:34 GMT
The rate of calculation under automatic enrolment is based on the statutory limits set by the government.
For 20-21 tax year the limits are based on your total earnings between £6,240 and £50,000 a year before tax. Or simply put any earnings between £520 and £4166 Per Calendar Month (pcm)
Therefore £4166.66 - £520 = £3646.66 of earnings from which pension contributions are made
Employers’ contribution is £3646.66 x 3% = £109.40
Employee’s contribution is £3646.66 x 5% = £182.33
If you earn less than £3646.66 per month the contributions are prorated to the percentages set.
The employee’s contribution is usually deducted gross before payment.
For 21-22 tax year the limits are based on your total earnings between £6,240 and £50,270 a year (up £270) before tax. Or simply put any earnings between £520 and £4189.17 PCM (up £22.51pcm)
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