Happy New Year - our first newsletter of 2021! Throughout this year we will continue to bring you news and developments relating to the charities sector.
Teachers will welcome the news that there is no rise to their employee pension contribution this year – rates will stay the same as 2018/2019.
However, there will be a 2.4% increase in the salary bands for the employee’s contribution rates. This reflects the 2.4% rise in the Consumer Price Index (CPI). This means that employees who were at the bottom of the 2018/19 pay bands may, during 2019/2020, pay less into their pension and so should have more money in their pockets. At a time when prices are rising, more money in teachers’ pockets is likely to be very welcome.
The changes to the salary bands are as follows:
|Annual salary rate for the eligible employment from 1 April 2018 – 31 March 2019||Annual salary rate for the eligible employment from 1 April 2019||Employee contribution rate|
|Up to £27,047.99||Up to £27,697.99||7.4%|
|£27,048 to £36,410.99||£27,698 to £37,284.99||8.6%|
|£36,411 to £43,171.99||£37,285 to £44,208.99||9.6%|
|£43,172 to £57,216.99||£44,209 to £58,590.99||10.2%|
|£57,217 to £78,022.99||£58,591 to £79,895.99||11.3%|
|£78,023 and above||£79,896 and above||11.7%|
For more information, please contact Doug Mullen.
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