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ILR Pension deduction confused in total gross salary show up

Archived UK Tier 1 (General) points system forum. This route no longer exists.

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ranajagandeep
Junior Member
Posts: 52
Joined: Wed Apr 06, 2011 8:49 pm
Location: UK

ILR Pension deduction confused in total gross salary show up

Post by ranajagandeep » Sat Dec 21, 2013 7:06 pm

Hi Forum Guys,

This forum has been really helpful for me in applying for my Tier 1 extension and now I am moving ahead for ILR. I have a query in regards to my salary. I have opted for company pension scheme in which £100 is deducted every year and the company adds the same amount. When I checked my payslip to my surprise they have done deduction of £100 in the salary section not in deduction section and when it shows my gross salary it is £100 less every month and which leads to £1200 for 1 year and this will affect my salary bracket. For better understanding below is the example:

Salary/////// /////////// ///////////// Deduction
Basic salary : 2000//////// ///////// Tax: 240
EE sal Sacr: 100//////// //////////// NI: 160
Overtime: 50
Total gross: £1950.00 /////////// // Total Deduction: 400.00

Paid Salary : £ 1550.00

Now if I highlight my total gross as £1950 then I am losing my £100 pension (£1200 per year) and if I highlight just basic salary then I am loosing my overtime. I am in dilemma, that should I cancel my pension plan for the next 1 year so that amount adds up directly. Please advise this is bit tricky as to what I can do to show this as a complete package.

Many Thanks,
J.

ranajagandeep
Junior Member
Posts: 52
Joined: Wed Apr 06, 2011 8:49 pm
Location: UK

Post subject: ILR Pension deduction confused in total gross

Post by ranajagandeep » Fri Dec 27, 2013 10:59 am

Seniors/ Members,

Could you please put your thoughts on this.

Many Thanks,
J.

bred
Newbie
Posts: 44
Joined: Wed Oct 03, 2007 6:45 pm

Re: ILR Pension deduction confused in total gross salary sho

Post by bred » Tue Apr 01, 2014 9:33 pm

Good question. I would also be interested to hear others' thoughts on this.

naveediiqbal
Senior Member
Posts: 606
Joined: Sat May 26, 2012 5:49 pm
Pakistan

Re: ILR Pension deduction confused in total gross salary sho

Post by naveediiqbal » Tue Apr 01, 2014 10:10 pm

Is it employer contribution or employee contribution. If it is employer's contribution then it shall not be part of your salary. If it is employee salary deduction then it shall make part of gross salary (which shall also include your overtime payment).

nks
Member
Posts: 230
Joined: Thu Jul 01, 2010 3:08 pm

Re: ILR Pension deduction confused in total gross salary sho

Post by nks » Wed Apr 02, 2014 3:21 pm

I have a similar situation and I opted out for a year before extension to avoid any confusions.

ranajagandeep
Junior Member
Posts: 52
Joined: Wed Apr 06, 2011 8:49 pm
Location: UK

Re: ILR Pension deduction confused in total gross salary sho

Post by ranajagandeep » Wed Apr 02, 2014 5:42 pm

HI Seniors/Members

Thanks naveediiqbal.

This EE SAL SAC £ -100.00 which I am sure is Employee Salary Sacrifice. I have seen my payslips, and I can see one section of it says ER contribution of £ +100.00.

Yes so its Employee Salary Sacrifice as per the example above.

Your thoughts again please :)

Regards,
J.

naveediiqbal
Senior Member
Posts: 606
Joined: Sat May 26, 2012 5:49 pm
Pakistan

Re: ILR Pension deduction confused in total gross salary sho

Post by naveediiqbal » Wed Apr 02, 2014 10:10 pm

Hi,

Your Gross salary as I already said will equals (Gross Salary = Basic Salary (this is before any deductions been subtracted) + Overtime ). You can provide a working in spread sheet format along with some narratives in your covering letter. I hope that will work and don't worry about it.

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