The contribution rates to your workplace pension scheme at Homeprotect are set by your Employer, within the rules laid down by the Government. All UK Employers were compelled to enrol their Staff into a qualifying workplace pension scheme between 2012 and 2017. The minimum amount the Employer must contribute is 3.00% of pensionable earnings.
These rates are based upon your Basic Salary, excluding bonus and / or commission.
As a worked example, a Member on a salary of £25,000, Homeprotect would be contributing £83.33 on a monthly basis to the pension fund of that Member.
All personal contributions qualify for two distinct tax benefits:
A worked example of personal contributions on the basis of a £25,000 salary is shown below:
Contribution of (say) 4.00% of pay = £83.33
Income tax relief saved = £16.66
Employees National Insurance saved = £10.00
Cost to you (from take-home pay) = £56.67
Employers National Insurance added = £5.75
Total amount invested in your Fund = £89.08 (63.60% more than the cost)
As you can see, there is huge incentive to invest into your pension fund: where else can a basic rate taxpayer put money and find it instantly worth 63.60% more, every time money is invested?
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