Share this content
0
411

auto enrolment question

is this legit re contributions?

can employee and employer agree a salary sacrifice arrangment whereby the employee sacrifices 1% of their gross pay and the employer pays 1% contribution of the gross pay (before the salary sacrifice)? so the overall contribution is 2% but NI is saved on the 1%?

Replies

Please login or register to join the discussion.

avatar
18th Oct 2017 18:21

Are you joking? It's been going on for donkeys' years!

https://www.pensionsadvisoryservice.org.uk/about-pensions/saving-into-a-...

Thanks (0)
18th Oct 2017 18:54

Yes

Thanks (0)
avatar
18th Oct 2017 19:00

that's very mean try 3 / 5% employee contributions will soon be at that level under auto enrol

Thanks (0)
avatar
19th Oct 2017 09:52

many thanks - yes of course I was aware that it applied to normal pension arrangements I needed to know specifically in the context of auto-enrolment - and yes I agree 1% is mean!

Thanks (0)
to nick farrow
19th Oct 2017 10:16

It's often overlooked that the (current) minima are 2% in total of which 1% must be paid by the employer.

It's not 1% apiece, though even TPR says it is in some places on its site.

Thanks (1)
Share this content