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 £42,500 per year. On 15 September 2019 Hank receives a pay increase to £44,000. To work out Hank’s monthly contribution for September you need to calculate the monthly pay Hank will earn in September:
15 days at £42,500 = £1,770.83 and 15 days at £44,000 = £1,833.33
Total £3,604.16.
This produces an annual salary rate of £3,604.16 x 12 = £43,250.00. This means that Hank will pay a pension contribution for September equal to 9.6% of £3,604.16 i.e. £346.00
In October Hank will earn £3,666.67, which will give an annual salary rate of:
£3,666.67 x 12 = £44,000.00.
This means that Hank will pay a pension contribution equal to 10.2% of £3,666.67 i.e. £374.