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.)
