Pay and your pension faqs Will I pay contributions on my overtime pay? This will depend on whether your overtime is classed as ‘contractual’ or ‘non-contractual’. If the overtime is in your contract of employment you will pay contributions on the pay you receive for working it. If the overtime is not required by your contract of employment, it is classed as ‘non-contractual’ and so contributions will not be based on the pay you receive for it.

What is a ‘salary sacrifice’ scheme and how will it affect my pension?
Employers can set up what is known as a ‘salary sacrifice’ scheme to enable employees to give up part of their gross salary in exchange for another benefit. This benefit may be a place in a nursery provided by your employer. Neither your pension contributions nor benefits will be affected provided your contract refers to the benefit as being pensionable, as it is your gross salary before the salary sacrifice is made that will be used work out your contributions

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