Living wage increase affecting pension salary exchange deductions

[Alantidey]

Just looked at my payslip for Friday 4th April.

I’ve fallen out of PSE again.

This time it’s due to the increase in the living wage to £12.21 per hour.

Guessing there will be a lot of people in the same situation as me wanting to maximise pension contributions.

So that I go back in to PSE again, I’ve had to reduce my AVC contributions to compensate so that I don’t take home less than minimum wage.

Fairly hefty reduction of just over £27.00 had to be made as obviously Royal Mail have made no adjustments to postmen’s wages yet.

[heapsy]

I reduced my AVC payment from 8% to 6% last weekend, on the app. Stayed within PSE. 37 hrs contract with delivery supplements. Will probably increase again, when we get a pay rise.

[fatcat1uk]

I work 24.40 hours a week ,I have also fallen out of PSE ,can anyone advise on the amount I need to come out with to move back into PSE ?

[Alantidey]

My understanding is so long as your pay and additions before deductions is more than the minimum wage (24.75 hours * £12.21) £302.20, then you should be fine.

[fatcat1uk]

Many thanks I shall rearrange my finances accordingly.

[heapsy]

In reply to the above posts, change your payment of AVCs to 6%. You should then be back in PSE. A percentage payment is better, as this will automatically increase in line with pay rises. No need for complicated maths. People were caught out because of the mid week change in minimum wage rate. I changed mine at the weekend, before the rate changed.

Also, IF there is a change in pay, through industrial action or lowering of earning due to long term sick, it's quick and easy on the app. No need for form filling / posting.