Salary Sacrifice - based on Pensionable Earnings, Total Earnings or Custom Earnings
A Salary Sacrifice pension deduction is deducted from the employee’s pay before Tax and NI is calculated, which means the employee is due to pay less Tax and NI. NEST expect employer contributions to meet or exceed the statutory minimum and employee contributions to be zero.
The pension deduction is calculated as a percentage of earnings you specified when setting up the NEST scheme by choosing one of the following options:
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Pensionable Earnings – set 1 or tier 1 must be equal to or more than the employee’s basic pay. Set 2 or tier 2 must be at least 85% of the employee’s Total Earnings.
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Total Earnings – set 3 or tier 3 includes 100% of an employee’s gross earnings as pensionable. This includes any additional pay elements, such as overtime or bonuses.
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Custom Earnings – provides you with complete flexibility over the earnings bases and contribution levels.
Add Employee Pension Deduction
Add Employer Pension Deduction
Enter Percentage for the Employee and Employer Pension Deduction