royal london salary exchange

Salary exchange calculator - Royal London for employers and trustees Salary exchange calculator You can use our calculator to produce statements detailing total savings pension contributions and take-home pay for each of your employees. You can then choose how to reinvest those savings.

How To Pay More Into Your Pension With Salary Sacrifice And Bonus Sacrifice Royal London

You give up part of your salary for a non-cash benefit in this case an additional employer pension contribution.

. Required fields are marked with. By contributing to their pension through salary exchange their take home pay will increase by 2849 from July 2022 193367 - 190518. You must have consent from your employee to use their information. The main reason people dont join pension schemes or opt out is because they cant afford it.

1 Thistle Street Edinburgh EH2 1DG. Salary exchange is a simple tax efficient way for you to save money on your workplace pension scheme and improve the benefits package you offer your employees. Sam agrees to exchange 100 of their salary each month Because Sams salary is reduced they save 33 in tax and NIC The 100 Sam exchanges is added to their employers contribution of 100 so 200 is paid into their pension each month. This helps demonstrate the real cost to them of joining the pension scheme.

750000 x 138 103500. Siobhan Jenkinss Salary of 2500 and commission 16154 The 2nd block to the right of the payments block shows Siobhans salary after deductions. Salary exchange is run on our system the joining notices will contain a detailed breakdown for the worker of their monthly contributions. Salary exchange is an agreement between you and your employer where you voluntarily exchange part of your gross salary in return for employer contributions into your pension.

You can add your NIC savings to your pension contribution or alternatively add to your take home pay. This shows here PAYE tax deduction of 30064 her National insurance deduction of 21374 a Pension deduction of 20000 and a fixed deduction of 2000 The pensions deduction is circled. The main advantage is both you and your employees pay less National Insurance contributions NIC and employees will pay less income tax. The current rules let you pay up to 100 of your salary or 3600 a year into your pension whichever is higher and still get tax relief.

They pay 5 of their salary into their pension and their employer also pays in 3. The average Royal London Group salary ranges from approximately 19284 per year for Service Consultant to 73460 per year for Service Delivery Manager. Were introducing salary exchange to our Royal London pension its a tax efficient way of saving for your future. But theres also a pensions annual allowance of 40000 and if you pay more than this.

Welcome to Royal London. The main benefit is that you pay less National Insurance contributions NIC and income tax. With the final increase in minimum pension contributions to Automatic Enrolment pension. Our excellent customer service and our mutuality means we can give customers that little bit more and you can trust us to be there for you when it counts.

Salary exchange is a way to make pensions more affordable for your employees with the added benefit of saving you the employer Employer National Insurance Contributions. The Royal London Mutual Insurance Society Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Total yearly salary payment before exchange 15000000 Total salary exchanged by employees 5 Employer NIC rate 202021 Employer yearly NIC saving. Salary exchange is an agreement between an employer and a worker that theyll exchange part of their gross salary in return for a non-cash benefit such as childcare vouchers or contributions to a pension scheme.

16000 salary Employer and worker are keeping. Salary exchange is treated as a change to the workers contract of employment. Founded in 1861 were the UKs largest mutual life pensions and investment company. Between 6 April and 5 July 2022 their take home pay would have reduced by 128 a month.

What does this mean for me. It provides life assurance and pensions. To find out more about how we can you help you with your workplace pension scheme and set up a salary exchange arrangement speak to your adviser or Royal London contact or visit our website for more information. Salary information comes from 578 data points collected directly.

The firm is on the Financial Services Register registration number 117672. The average Royal London Group daily wage ranges from approximately 123 per day for Data Analyst to 146 per day for Technical Support Specialist. Figures are based on an average salary of 30000 per employee each exchanging 5 of their salary for a pension contribution. Make sure that these extra pension contributions dont take you over the 40000 annual allowance for pensions.

Using salary exchange the employee sacrifices 125 a month reducing their salary from 2500 to 2375 a month. Example 1 Adam White is assessed as an eligible jobholder and salary exchange applies.