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Home I’m paying staff using government grants of up to 80%. Do I still need to deduct employee pension contributions?

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I’m paying staff using government grants of up to 80%. Do I still need to deduct employee pension contributions?

Yes, TPR has advised that all usual pension contribution deductions apply – even if you’re using grants to pay to keep staff on payroll. This includes paying the agreed levels of pension contributions, including meeting the statutory minimums for pension contributions, paying at least 3% as an employer.

You can also choose to top this up to cover your employees’ contributions or deduct this from salaries as normal.

From July 2020 furloughed workers have been able to return to work part-time with employers being asked to contribute towards the salaries of their furloughed staff.

Salaries of all furloughed workers, full- and part-time, remain pensionable.

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NOW: Pensions is registered in England and Wales as NOW Pensions Limited (No. 07766398), 6 Bevis Marks, London, EC3A 7BA. We are regulated by The Pensions Regulator and identifiable under the Pension Schemes Registry (PSR) under registration number 12005124 and HMRC reference number 00776316RJ.