Why have my avc and lump sum booster payments moved to right hand side of wages slip?

[chuzzwuzzer]

Up until this week my avc, pension and lump sum booster payments were all showing on the left hand side of payslip. This week it's all on the right side. I had a flat week last week as I had a weeks leave. Does this mean I've fallen out of pse, whatever the hell that means?

[RobertT]

Yes, you've fallen out of PSE this week and you're paying more NIC's.
Although I'm not sure of the reason why.

This is RM's brief explanation of how it works(https://www.myroyalmail.com/node/6791):

1. Under PSE, you no longer make a personal contribution to your Royal Mail pension. This means contributions coming out of your weekly or monthly basic paystop. Your basic weekly or monthly pay is reduced by the amount equal to the contribution you currently make to your Royal Mail pension. This includes any Additional Voluntary Contributions (AVCs) you may be paying.

2. We pay an increased employer contribution so that the amount paid into your pension is the same as before. The payments column of your payslip will start showing your basic pay and the PSE adjustment.

3. Because your basic pay has been reduced, you will start paying lower National Insurance contributions (NICs), if you pay NICs. Your take-home pay increases by the same amount as any NICs saving you make.

PSE has no effect on the overall level of contributions made to your pension, your pensionable pay, pensions benefits or other Royal Mail benefits you receive. 

[chuzzwuzzer]

Cheers Robert. Would it have anything to do with the fact I'm paying £60 into avc's and I had a flat week with no overtime last week? I'm Full time by the way.

[RobertT]

I always thought it was based on just basic pay anyway to be honest.

Someone who knows a bit more about than me, it might be along soon to clarify.

[ihatedogs]

Cheers Robert. Would it have anything to do with the fact I'm paying £60 into avc's and I had a flat week with no overtime last week? I'm Full time by the way.

You'll have fallen below minimum wage. What are your full time hours and what's your basic wage?

[chuzzwuzzer]

£505. 13
37 hrs.

[ihatedogs]

£505. 13
37 hrs.

Taking in to account the £60 AVC payment & the 6% standard payment (£30.30) your wage is approximately £415 for 37 hours. Minimum wage for 37 hours is £11.44 x 37= £423.28.

[chuzzwuzzer]

Excuse my ignorance but if it's based on basic pay why has this only occurred this week for the first time when I've had a flat week with no overtime?

[ihatedogs]

Excuse my ignorance but if it's based on basic pay why has this only occurred this week for the first time when I've had a flat week with no overtime?

Can't answer that one I'm afraid. However just check previous payslips to see any difference between them. What you're looking for is the bottom figure on the left hand side. You'll have your standard wage, underneath that will be any other payments plus your pension/AVC deductions & below that is your weekly wage after salary sacrifice. On a flat week this needs to be above minimum wage.

[chuzzwuzzer]

Since the new pension and avc started all my deductions were showing on the left. The only thing that's different is I'm on a flat week after a weeks leave as I usually do a lot of overtime. Tried ringing wages earlier to see if they could explain why, but this joke of a company can't even speak on the phone anymore. You have to email them.

[yellowbelly]

.............
leave as I usually do a lot of overtime. .............

That's it. The amount of your AVC's on a flat week are too much and bring you down below minimum wage or whatever it's called
and it takes you out of PSE.

[chuzzwuzzer]

OK cheers for the replies. Looks like I'll have to try and remember to adjust the amount of avc deductions before I have another week's leave. Nothings ever simple . Cheers guys.

[ihatedogs]

OK cheers for the replies. Looks like I'll have to try and remember to adjust the amount of avc deductions before I have another week's leave. Nothings ever simple . Cheers guys.

I'm going to presume you're paying the lump sum booster.
Standard pension payment 6%
Lump sum booster. 1%
AVC. 8%
Total. 15%
15% off your wage brings it to £429.36 (approx £6 above minimum wage ) you can just set your avc to 8% & leave it alone.
You'll have to adjust it next year, as a lot of us will, when the minimum wage rises again.

[chuzzwuzzer]

Yes lump sum booster also. I'll change it to 8 percent to be on the safe side. Many thanks.

[heapsy]

I played around with the AVCs and settled on 8%, after the first few weeks to test the water. I agree, I'll have to reduced my payment to about 6% next April.