Mid month new starters to the Scheme

When a new member to the Scheme has a start date other than the 1st of the month, the contributions tier should be calculated based on the actual salary earned and not the contractual full monthly amount.

For example a new starter on 1 April has a salary of £36k a year, which is equivalent to £3,000 per month and the contributions rate would be 8.6% (tier 2).  The member actually starts on 11 April and gets paid £2,000 for the month which equates to an annual rate of £24,000 (12 x £2,000); therefore the contribution rate is 7.4% (tier 1).

Last Updated: 24/04/2018 15:55