advice needed

[terry2972]

Shortly I will be able to up my pension contributions will the money get deducted from my basic wage or from all pay including Overtime many thanks

[TrueBlueTerrier]

Shortly I will be able to up my pension contributions will the money get deducted from my basic wage or from all pay including Overtime many thanks

Only pensionable pay and allowances - Though to be frank I don't know what is and what isn't pensionable.

[RobertT]

Shortly I will be able to up my pension contributions will the money get deducted from my basic wage or from all pay including Overtime many thanks

Pension payments get deducted from your gross pay before any tax is taken off and they benefit from tax relief at source. So a £10 per week contribution only actually costs £8 because £2 gets taken off your income tax.

[bustedflush]

Yes, but what he means is will the percentage contribution be payable from ALL his wages including O/T etc. or his basic. The answer is the basic pay, the weekly amount is fixed and will not increase if you do O/T or get a bonus.

[terry2972]

thank you busted flush for the info its still a good deal if i am correct i put ion 6% and they put in 9% so not a bad deal

[bustedflush]

thank you busted flush for the info its still a good deal if i am correct i put ion 6% and they put in 9% so not a bad deal

Indeed - if you can afford it do it. I would too.

[Lincox]

This is not correct. 6% will be deducted from both basic and overtime, however the employers contribution will be based on basic pay only.

[terry2972]

Thank you for that information I will have do some number crunching but if I can afford it it will probably still be a good deal

[toomuchcoke]

This is not correct. 6% will be deducted from both basic and overtime, however the employers contribution will be based on basic pay only.

That is incorrect. My payslips show the same deduction against "RMDCP 6% EE" no matter how much overtime I've done. However I guess things may be different if you on a part-time contract as any overtime up to 39 hours will get a pension deduction (and presumably a contribution from the RM?) from it?

[Lincox]

This is not correct. 6% will be deducted from both basic and overtime, however the employers contribution will be based on basic pay only.

That is incorrect. My payslips show the same deduction against "RMDCP 6% EE" no matter how much overtime I've done. However I guess things may be different if you on a part-time contract as any overtime up to 39 hours will get a pension deduction (and presumably a contribution from the RM?) from it?

You may be correct as I am part time, but the contribution from Royal Mail only seems to be based on contracted hours.