Earnings basis

The earnings basis refers to the basis of the employee’s earnings that are used for calculating pension contributions. See the options below:

  • Qualifying Earnings
    • Total Minimum required: 8% of all Banded Earnings
    • Company Minimum: 3% of all Banded Earnings
    • Definition: All earnings between £520pm and £4,189 per month are the banded range
    • All earnings include any of the following components: salary, commission, bonuses, overtime, maternity pay, statutory sick pay, etc.
  • Pensionable Pay Set 1
    • Total Minimum required: 9% of all Basic Earnings
    • Company Minimum: 4% of all Basic Earnings
    • Definition:  Basic Salary used to calculate contributions. Excludes any additional earnings (i.e. bonuses, overtime, etc.)
  • Pensionable Pay Set 2
    • Total Minimum required: 8% of all Pensionable Earnings
    • Company Minimum: 3% of all Pensionable Earnings
    • Definition: Pensionable Earnings must be at least equal to basic pay and at least 85% of the total earnings (All earnings include bonuses, commission, overtime, etc.)
  • Pensionable Pay Set 3
    • Total Minimum required: 7% of all Pensionable Earnings
    • Company Minimum: 3% of all Pensionable Earnings
    • Definition:  Pensionable pay includes all earnings (All earnings include basic salary, bonuses, commission, overtime, etc.)
Earning basisQEPensionable PayPensionable EarningsPPS1PPS2PPS3
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