We want to make life easier when it comes to pensions, so we have a simple way for you to calculate how much to pay on to your pension.
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.
Percentage (%) of contract income / invoice value 📈
- The percentage value you select will be applied to the total contract income.
- That means if you request 10% and your weekly contract income is £750, we'll deduct £75 and pay this on to your chosen pension.
- You'll receive full tax relief on this, including all Employment Cost savings.
- We'll make this payment to your provider as a Gross Employer Contribution.
- If you work more or less days in a given pay period, your pension value will flex as per the contract income.
Important Points to Note!
- If you select 100%, this will take 100% of your available income over the minimum wage. We're not able to pay 100% of the total contract income on to your provider, and must ensure that at a minimum, you have received minimum wage + holiday pay for the time you have worked.
- If you select a high percentage (with the above in mind) it may not actually be possible to take that full amount, depending on the proportion of your total contract income that is taken up as minimum wage + holiday pay (usually around £482 per week over 37.5 hours).
- If you select a high percentage that eats into the NMW element of your pay, we'll apply the highest percentage possible against your available pay.
Fixed amount per pay period 💷
- You can request a fixed amount to be deducted per pay period and this will remain the same until you notify us of anything different.
- This will not fluctuate with income, so we'll always try to deduct the agreed fixed amount per period.
- If we are unable to deduct the full agreed amount in a pay period due to insufficient income (for example, you worked less days) we will deduct the maximum allowed, the difference will not carry forward to the next period.
You can find more helpful resources on pensions below:
If you need any additional illustrations to factor in varying pension values just let our friendly onboarding team know and we'll get these sent over:
Get in touch for more information:
📧 sales@nasagroup.co.uk
📞01179297683 - Option 1