Introduction to The People's Pension Deductions

The People's Pension permits employers to calculate pension deductions based on a percentage of Qualifying Earnings, Pensionable Earnings or Total Earnings. The tax basis of the pension deduction can be via Salary Sacrifice (also known as Salary Exchange), Gross or Net. See The People's Pension Glossary of Terms for more information.

In this section:

• Salary Sacrifice or Salary Exchange pension - based on Qualifying Earnings

• Net Pension - based on Qualifying Earnings

• Gross (Net Pay Arrangement) pension - based on Qualifying Earnings

• Salary Sacrifice or Salary Exchange pension - based on Pensionable Earnings or Total Earnings

• Net pension - based on Pensionable Earnings or Total Earnings

• Gross (Net Pay Arrangement) deduction - based on Pensionable Earnings or Total Earnings