Salary sacrifice advice

[randytusk]

I've entered into a new work contract and decided to direct most of my pay into a salary sacrifice/exchange agreement.

So gross pay is 35k and I've opted to take up to the personal allowance in pay up to 12,570 and send the rest to the workplace pension.

I've received my first payslip and it has the correct take home pay and pension contribution, however there is no employer contribution added on.

I've asked payroll and they reckon the 3% employer top-up is there but they've taken 3% of contribution to account for it and also argue they area exempt from it anyway as I've opted for salary sacrifice. Sadly they won't pass on any of their NI saving either..

Is the absence of employer contribution correct?

[WelshRich]

Sounds like a mess to me

It seems that they are suggesting that because they are paying some of your sacrificed salary into your pension, they are allowed to count this as covering their statutory 3% (they can’t)

Also, you don’t say how many hours you’re working, but so far as I know, you are not allowed to sacrifice salary to a level that would take you to below the minimum wage - If you’re full time, it sounds as though this is what you’re trying to do.

[AllyM]

Sounds like they are screwing you as much as they think they can get away with. Some two-bit outfit?

Why not just make min contributions to the employers scheme to get the 3% match (stingy) then put the rest into a SIPP and get relief that way since you aren’t getting any of the NI saving from your employer anyway? Unless there are other factors at play I think that’s what I’d be doing.

Or look for a better, more generous, employer.

[northandy]

It seeems like there’s loads wrong.

no they can’t just not pay the 3% it being Sal sacrifice is irrelevant

Also like someone else mentioned you can’t Sal sacrifice to a point below min wage so if you were doing 37.5 hours a week you can’t Sal sacrifice below 24,784 for example

[Panamax]

randytusk said:

I've received my first payslip and it has the correct take home pay and pension contribution, however there is no employer contribution added on.

I'm not an expert on this stuff but I can see no reason why an employer pension contribution would necessarily show on your payslip. Your payslip would show pension contributions deducted from your pay but may not show what the employer has put in.

The real question is what your contract of employment says.

I suggest you wait for a "pension statement" and see what's actually gone in. Or contact the pension provider and ask them, but don't forget the employer has a certain amount of time to pay over its contributions.

[Panamax]

randytusk said:

Sadly they won't pass on any of their NI saving either..

That's entirely up to them.

[supersport]

Panamax said:

randytusk said:

I've received my first payslip and it has the correct take home pay and pension contribution, however there is no employer contribution added on.

I'm not an expert on this stuff but I can see no reason why an employer pension contribution would necessarily show on your payslip. Your payslip would show pension contributions deducted from your pay but may not show what the employer has put in.

The real question is what your contract of employment says.

I suggest you wait for a "pension statement" and see what's actually gone in. Or contact the pension provider and ask them, but don't forget the employer has a certain amount of time to pay over its contributions.

All my employers have put their contributions on the payslip. After all you need this information should you be maxing out contributions.

[SoliD]

AllyM said:

Sounds like they are screwing you as much as they think they can get away with. Some two-bit outfit?

Why not just make min contributions to the employers scheme to get the 3% match (stingy) then put the rest into a SIPP and get relief that way since you aren t getting any of the NI saving from your employer anyway? Unless there are other factors at play I think that s what I d be doing.

Or look for a better, more generous, employer.

But he should still be getting his ni relief of 8% or so.

As above I'd wait until you can see what's actually gone into your pension first.

[butchstewie]

I would ask them to show their workings.

I tell my employer that I want to contribute the maximum that they will match and then I want to add X over and above this.

On my payslip it shows the employer pension contribution and my own.

[randytusk]

WelshRich said:

Sounds like a mess to me

It seems that they are suggesting that because they are paying some of your sacrificed salary into your pension, they are allowed to count this as covering their statutory 3% (they can t)

Also, you don t say how many hours you re working, but so far as I know, you are not allowed to sacrifice salary to a level that would take you to below the minimum wage - If you re full time, it sounds as though this is what you re trying to do.

The contract is for 16 hours per week - so falls within NMW.

Payslip and contributions are to appear on the 5th of every month - if its exactly the same as the sacrificed amount ppm, then its likely there is no employer top-up included......

[Doofus]

Slightly puzzled as to why your employer's pension contribution would be on your payslip anyway.

Is it just that they aren't showing on your payslip and HR don't understand what you're asking because it's obvious to them?

[northandy]

randytusk said:

The contract is for 16 hours per week - so falls within NMW.

Payslip and contributions are to appear on the 5th of every month - if its exactly the same as the sacrificed amount ppm, then its likely there is no employer top-up included......

Ah fair enough, yeah if when you see your pension payment land you will know if you need to challenge it.

Someone else said employer’s contribution wouldn’t show on the payslip I think that’s very rare now, everywhere I’ve worked it’s shown