Falling out of PSE

[heapsy]

So, week three of the financial year and I've fallen out of PSE. First week was fine. Second week my new, lower contributions kicked in. £118 per week down to £83 per week in Flexi plan. The higher minimum wage meant I tried to dodge the PSE issue. Anyone else had the problem and what are you contributing now? Many thanks.

[Rumple]

How would I know? Would it be on which side my deductions are on my payslip? I’ve noticed that my deductions are coming out after tax now.

[RobertT]

If you're within PSE limits, your pension contributions will be on the left hand side of your pay slip. If you're not, they'll be on the right.

[ihatedogs]

So, week three of the financial year and I've fallen out of PSE. First week was fine. Second week my new, lower contributions kicked in. £118 per week down to £83 per week in Flexi plan. The higher minimum wage meant I tried to dodge the PSE issue. Anyone else had the problem and what are you contributing now? Many thanks.

I've just realised reading this I've dropped below minimum wage & am paying more n.i.
I presume that ringing Scottish widows on Monday & reducing my contributions will result in me going back to being covered by the PSE & my take home rising accordingly?

[heapsy]

So, week three of the financial year and I've fallen out of PSE. First week was fine. Second week my new, lower contributions kicked in. £118 per week down to £83 per week in Flexi plan. The higher minimum wage meant I tried to dodge the PSE issue. Anyone else had the problem and what are you contributing now? Many thanks.

I've just realised reading this I've dropped below minimum wage & am paying more n.i.
I presume that ringing Scottish widows on Monday & reducing my contributions will result in me going back to being covered by the PSE & my take home rising accordingly?

Hopefully yes. But people are not being told what the maximum is because, wait for it, it is deemed to be financial advice. A chat with someone in Payroll today completely baffled me. There's loads of variables depending on contracted hours, overtime etc. A real guessing game.

[oliviamae]

I’ve kept my AVC the same, 1st week of financial year I came out of PSE then the next week I was back in it ,then the 3rd week I was out of it ,then 4th week back in it .
Feeling confused, although don’t really care as planning to go within a couple of years

[mrcurve]

I’ve kept my AVC the same, 1st week of financial year I came out of PSE then the next week I was back in it ,then the 3rd week I was out of it ,then 4th week back in it .
Feeling confused, although don’t really care as planning to go within a couple of years

if thats happening, I would think your paying in a small amount too much, its takes them about a week to adjust this.

I did a simple calc a few years ago, that may help, its an old post so please update with your work hrs and the current minimum wage.
if you rotate you may be on different pay each week and one of the weeks your payment is set too high

think the new minimum wage is 10.42 work hrs maybe 37 some 38

old post below






if you work the same job and hours every week then you can work out how much you can pay in by doing this.

use the ("assessable pay" bottom left of your payslip) you need two consecutive weeks, subtract the first week from the next week, then divide it by your hours.

example would be £6000 week 17 £6500 week 18, =£500 / 39 = £12.82

subtract the minimum wage £12.82-£7.50 = £5.32

then times this by your hours £5.32 x 39 = 207.48

[oliviamae]

Thank you

[Rob]

"If you're within PSE limits, your pension contributions will be on the left hand side of your pay slip. If you're not, they'll be on the right".

For the first week ever my pension contributions have moved to the right hand side of my payslip. My take home pay is less than before.
How do i stay within salary sacrifice limits? I'm part time, do no overtime so same pay each week.

[heapsy]

I’ve kept my AVC the same, 1st week of financial year I came out of PSE then the next week I was back in it ,then the 3rd week I was out of it ,then 4th week back in it .
Feeling confused, although don’t really care as planning to go within a couple of years

if thats happening, I would think your paying in a small amount too much, its takes them about a week to adjust this.

I did a simple calc a few years ago, that may help, its an old post so please update with your work hrs and the current minimum wage.
if you rotate you may be on different pay each week and one of the weeks your payment is set too high

think the new minimum wage is 10.42 work hrs maybe 37 some 38

old post below






if you work the same job and hours every week then you can work out how much you can pay in by doing this.

use the ("assessable pay" bottom left of your payslip) you need two consecutive weeks, subtract the first week from the next week, then divide it by your hours.

example would be £6000 week 17 £6500 week 18, =£500 / 39 = £12.82

subtract the minimum wage £12.82-£7.50 = £5.32

then times this by your hours £5.32 x 39 = 207.48

Not sure how you get these figures and the real problem is that very few, especially in delivery, get flat weeks. Payroll will not tell anyone what the formula is, but as I've posted previously, they use about 40 different variables.

[mrcurve]

I’ve kept my AVC the same, 1st week of financial year I came out of PSE then the next week I was back in it ,then the 3rd week I was out of it ,then 4th week back in it .
Feeling confused, although don’t really care as planning to go within a couple of years

if thats happening, I would think your paying in a small amount too much, its takes them about a week to adjust this.

I did a simple calc a few years ago, that may help, its an old post so please update with your work hrs and the current minimum wage.
if you rotate you may be on different pay each week and one of the weeks your payment is set too high

think the new minimum wage is 10.42 work hrs maybe 37 some 38

old post below






if you work the same job and hours every week then you can work out how much you can pay in by doing this.

use the ("assessable pay" bottom left of your payslip) you need two consecutive weeks, subtract the first week from the next week, then divide it by your hours.

example would be £6000 week 17 £6500 week 18, =£500 / 39 = £12.82

subtract the minimum wage £12.82-£7.50 = £5.32

then times this by your hours £5.32 x 39 = 207.48

Not sure how you get these figures and the real problem is that very few, especially in delivery, get flat weeks. Payroll will not tell anyone what the formula is, but as I've posted previously, they use about 40 different variables.

Well the figures were just an old example, to show how to work out the most you could pay in every week/month, but it does need two back to back flat pay slips.

for example I have flat weeks 4 and 5, subtract the week 4 assessible pay from the week 5 assessible pay to get your weekly assessible pay, then divide it by your base hours "see the payslip" lets say its 37 might be more or less, this should give you your hourly rate, and if this is very close to the minimum wage you may fall out of PSE some weeks.

when trying to work out how much to pay into an avc, don't forget if your buying stuff like cars bikes etc it will also be part of the PSE calculation and leave less room for your AVC

[heapsy]

Again it still doesn't add up. In the last tax year, my pay was different every single week, due to overtime. The same this tax year. The only difference is that I lowered my Flexi plan payment from £118 per week, to £83 per week. Now I'm out of PSE. Surely a drop of £35 per week is enough to stay within PSE, even when the minimum wage has gone up. Something isn't right.

[mrcurve]

Ok so if you dont have a 2 flat weeks you could try this,

37hr week x minimum wage would be £385.54 add on you avc payment and any other pse items cars bikes etc and if its more than your pay rate, or close to it then it could cause you a problem, of course industrial action would also knock us out too.

£83 would be close to knocking me out, but regional pay and different contract hrs may be an issue too.