If the member has a mid-month salary increase, the contribution tier is still determined by what the member is paid in the pay period, as set out in the following example:
Example
Hank is a classroom teacher who works full-time and earns £38,500 per year. On 15 September 2015 Hank receives a pay increase to £41,500. To work out Hank’s monthly contribution for September you need to calculate the monthly pay Hank will earn in September:
15 days at £38,500 = £1,604.167 and 15 days at £41,500 = £1,729.167
Total £3,333.33.
This produces an annual salary rate of £3,333.33 x 12 = £40,000. This means that Hank will pay a pension contribution for September equal to 9.6% of £3,333.33 i.e. £320.00
In October Hank will earn £3,458.33, which will give an annual salary rate of:
£3,458.33 x 12 = £41,500.
This means that Hank will pay a pension contribution equal to 10.2% of £3,458.33 i.e. £352.75.