If you offer your employees access to a personal pension, you can leave out commission, overtime and bonuses when you are calculating the 3 per cent minimum of basic pay that you contribute to your employee’s personal pension.
For example, you and your employee could both put in 5 per cent. The total amounts must, however, be within HMRC limits for how much you and your employee can contribute to a personal or Stakeholder pension in a year.
Contributions may be up to 100 per cent of earnings, up to a maximum of £245,000 per year during 2009/10, rising to £255,000 in 2010/11.
You must pay your employer contribution to the personal pension scheme provider, plus the employee contributions, within the stringent time limits.
You do not have to provide access to a Stakeholder pension scheme for any employee: