Help Centre for Payroll bureaux

I’m paying staff using government grants. Do I still need to deduct pension contributions?

Yes. The Pensions Regulator has advised that all usual pension contribution deductions apply – even if you’re using grants to pay up to 80% of wages to keep your employees on payroll. This includes meeting the statutory minimum pension contribution, paying at least 3% as an employer.

You can also choose to top this up to cover your employees’ contributions.

From August 2020 furloughed workers can return to work part-time with employers being asked to contribute towards the salaries of their furloughed staff.

At the moment, there are no details about what percentage of salaries employers will be asked to pay.

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

If you have any more questions on deducting pension contributions, or on anything else, please email our customer services team at clientsupport@nowpensions.com.

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