Help Centre for Employers

Are pension contributions taken before or after tax is calculated?

Pension contributions are deducted from an employee’s gross earnings, i.e. before PAYE tax is assessed or deducted. This means that the employee receives the full tax credit (at the highest rate that applies) for any payment made and that the full amount is then credited to the member’s pension pot.

NOW: Pensions has a good technical infrastructure combined with a pension product suitable for our team. We couldn’t be happier with NOW: Pensions.
Martin Woods, SALT.agency