What are the minimum contribution levels when pensionable or total earnings basis is used?

When an employer has decided to use their own definition of pensionable pay (also known as self-certification), there are different minimum contribution levels. Employers should confirm which definition of pensionable pay they’re using and check which minimum contribution level applies to them.

These tables are based on the relief at source method of claiming tax relief. Read more about tax relief>>

Pensionable earnings (set 1) – When contributions are worked out on at least basic pay.

Pensionable earnings (set 2) – When contributions are worked out on at least basic pay (but pensionable pay must make up at least 85% of total earnings). The employer must monitor this.

Total pensionable earnings (set 3) – When contributions are worked out on total pay including wages, commission, overtime, bonuses, performance-related pay and any other earnings you’ve paid the employee.

 

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Find out more about the increase to contributions»

Want help telling employees about the increase to contributions? Check out our communications toolkit for handy template letters, posters and payslip wording»  

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