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
| Wage | 3% 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