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Changes to take-home pay
7 May 2019

Changes to take-home pay

If you’re a member of the AHBRSP, you might notice some changes to your April take-home pay. This is the result firstly of a change to the personal tax allowance and the National Insurance (NI) primary threshold, and secondly because of the increase in minimum auto-enrolment (AE) pension contributions set by the Government.

The annual personal tax allowance has risen from £11,850 to £12,500, while the weekly National Insurance primary threshold has increased from £162 to £166. For most people, this means an increase in their take-home pay. If you are paying AE rates into the AHBRSP, this increase has offset some of the pension contribution rate increase (from 3% to 5%), which also took effect in April.

Net effect of AE on take-home pay

Wage3% employee
contribution
(net of tax relief) 
5% employee
contribution
(net of tax relief) 
Contribution
increase
Personal tax
allowance + NICs
Net take-home
pay change
£10,000
 £7.94 £12.88£4.94£2.08 -£2.86
£20,000
 £37.94 £46.21£18.91£12.91 -£5.36
£26,500
 £40.94 £67.88£26.94£12.91 -£14.03
£30,000  £47.94 £79.55£31.61£12.91  -£18.70
£40,000 £67.94 £112.88£44.94 £12.91  -£32.03 
£45,000  £77.94  £129.55£51.61 £12.91 -£38.70
          

 Professional Pensions analysis

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