Sunday, February 17, 2019

Pay Cuts for Millions

Millions of workers could see their take-home pay fall in six weeks' time when the amount they have to pay into their pension pot increases.
Since 2012, 10 million eligible workers have been automatically signed up to workplace pensions.From April, their contribution will rise from 3% of their salary to 5%.
The annual take-home pay of someone earning £15,000 will typically be £49 lower, if they pay contributions on their entire salary. Someone on £30,000 will take home £253 less according to the calculations. The hit to net pay could have been bigger but a tax cut for most earners will soften the blow of higher auto-enrolment contributions.The personal allowance is due to increase to £12,500 from April.

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