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salary sacrifice pension VS minimum salary requirement

Posted: Sat Jan 14, 2012 12:47 am
by jeffreychen83
Hi... I have a quick question about the minimum salary requirement....

What if

Case 1: my actual salary (£31,000) at or above minimum salary requirement (£30,000), but I "sacrifice" 5% of my salary and put them into my pension account. So the salary credited into my current account is only £29450, which is below the minimun salary requirement.

(p.s.) I think this case should be fine? as in the letter of the employer, they should give the actual salary (£31000) rather than £29450


But my real concern is Case 2:
My actual salary is £29,500, which is below £30000. However, because the employer also contributes 5% of my salary (£1475) into my pension account, so I have £1475 benefit from the employer. whether I could add the figure onto my salary, and made it up with an overall £30975? (£29500+1475), which is above the minimum salary requirement.

Does case work really take company benefits into account when they assess the salary? By the way, my job title is in shortage occupation list, does that helps as well when assess the salary?

Many thanks

Re: salary sacrifice pension VS minimum salary requirement

Posted: Sat Jan 14, 2012 8:00 am
by hsmp28122006
jeffreychen83 wrote:Hi... I have a quick question about the minimum salary requirement....

What if

Case 1: my actual salary (£31,000) at or above minimum salary requirement (£30,000), but I "sacrifice" 5% of my salary and put them into my pension account. So the salary credited into my current account is only £29450, which is below the minimun salary requirement.

(p.s.) I think this case should be fine? as in the letter of the employer, they should give the actual salary (£31000) rather than £29450


But my real concern is Case 2:
My actual salary is £29,500, which is below £30000. However, because the employer also contributes 5% of my salary (£1475) into my pension account, so I have £1475 benefit from the employer. whether I could add the figure onto my salary, and made it up with an overall £30975? (£29500+1475), which is above the minimum salary requirement.

Does case work really take company benefits into account when they assess the salary? By the way, my job title is in shortage occupation list, does that helps as well when assess the salary?

Many thanks
Case1: My understanding is, you can claim the gross BEFORE pension sacrifice - so you should be OK. I had done the same and wasn't asked any question regarding this. You can claim, also because it forms part of your remuneration package.

Case2: No, you can't claim against employer's pension contribution. Read page29:

http://www.ukba.homeoffice.gov.uk/sitec ... iew=Binary

Posted: Sat Jan 14, 2012 11:53 pm
by jeffreychen83
I see. Thanks.

gross salary

Posted: Sun Jan 15, 2012 1:01 pm
by thewolfman21
As i understand we have to take Gross i.e. before any deductions for points calculation.

Re: gross salary

Posted: Tue Jan 17, 2012 1:31 am
by jeffreychen83
thewolfman21 wrote:As i understand we have to take Gross i.e. before any deductions for points calculation.
Thanks, as I understand what you meant is that the amount of monday sacrificed would not affect the overall gross salary. but on the other hand, the money contributed/matched by the employer should not be counted.