Pension deductions from pay

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?

Benjamin Fabi FPFS
Chartered Financial Planner

http://twitter.com/benjaminfabi 

Comments

  • JonaJona Member
    edited June 5

    £75.......

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

  • richallumrichallum Administrator

    £60

    Paraplanner. F1, Apple, Nutella, ice cream. No trite motivational quotes. Turning a bit northern. Republican.

  • richallumrichallum Administrator

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

    Paraplanner. F1, Apple, Nutella, ice cream. No trite motivational quotes. Turning a bit northern. Republican.

  • benjaminfabibenjaminfabi Moderator
    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.
    Benjamin Fabi FPFS
    Chartered Financial Planner

    http://twitter.com/benjaminfabi 
  • JonaJona Member

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

  • JonaJona Member

    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.

  • the question is: what is the gross contribution?

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