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How does Nasa calculate my SIPP deductions?

We keep it simple! You choose from two clear options.

Calculating pensions can be tricky as depending on how your employer software works, percentages can be applied to different parts of the income they receive.

We have made our process as simple as possible, so there are two options to chose from. 

Option 1: Percentage of Contract Income (Invoice Value) 📈

How it works:

  • Your percentage applies to the total contract income we receive for you
  • Example: if you request private pension of 10% and your weekly contract income is £1000 (5 days at £200 per day) = total pension deduction will be £100 per week
  • Flexible: More work days = higher contribution, fewer days = lower contribution

Important Limits ⚠️ We can't take 100% of your total income - by law, you must receive:
  • Minimum Wage Salary for hours worked (shown as Basic Rate on your payslip)
  • Holiday pay on that Salary (shown as Holiday Pay on your payslip)
  • That usually amounts to around £514 per week (37.5 hours worked and 28 days annual leave allowance)

If you choose a high percentage:

  • We'll take the maximum legally possible in that pay period
  • Won't go below minimum wage requirements
  • No carry-forward if we can't take the full amount

 

Option 2: Fixed Amount Per Pay Period  💷

How it works:

  • Same amount every pay period - completely predictable
  • No fluctuation with your contract income
  • Example: if you ask for £200 every week, we will deduct £200 regardless of how much contract income we receive for you (subject to NMW Salary requirements)

What happens with low contract income weeks:

  • We'll take the maximum allowed (after Minimum Wage Salary & Holiday Pay)
  • Any shortfall doesn't carry forward to the next period
  • Your pension stays consistent when income is sufficient


Which Should You Choose? 

Choose Percentage of Invoice Value If:

  • Your work hours vary significantly
  • You want contributions to match your earnings
  • You prefer automatic adjustments in line with number of days/hours worked 

Choose Fixed Amount If:

  • You want predictable, regular contributions
  • Your work hours are fairly consistent
  • You prefer budgeting with fixed amounts

 

Need Help Deciding? 

Want to see different scenarios? Our friendly onboarding team can send you illustrations showing how various pension amounts would work with your income patterns.

📧  sales@nasagroup.co.uk
📞  01179 297 683 (Option 1)

Simple calculations, maximum tax relief, complete transparency - that's the Nasa way!