Pension deductions from pay

benjaminfabi

Hi,

I'm having a brain freeze and in my head there are too many permutations of the answer to this simple question!

Client is a member of a GPP where the contribution rate is 7.5% employee. Old school basis, so a net contribution from net pay, with relief at source.

If they have a gross salary of £1,000 pm, what would you expect to see as the net monthly deduction on the payslip?

Jona

£75.......

(although you now have me doubting myself). 7.5% of gross pay (£1,000) = £75...

richallum

£60

richallum

You've got the pension contribution as employer in that screenshot which could be causing an issue.

benjaminfabi

Well if its a gpp it would be an employer's scheme? The results there show it as a RAS eligible contribution.

I'm the same as you Richard and expect to be seeing £60 from net pay but literally none of the online salary calculators are doing this no matter what type of scheme is selected.

Jona

Same if you mark it as PP albeit that is deduction from gross pay.

Jona

But if it is deducted from net pay; then yes, £60 grossed up gives you your £75.

Your right @benjaminfabi brain freeze on a simple question.

arongunningham

the question is: what is the gross contribution?