Employee's pension contributions
Pension contributions made by your employee can reduce the amount of tax they pay. These contributions may be deducted from their gross pay when calculating their tax.
You should not deduct these contributions from your employee’s gross pay when you are calculating the following:
Your employee’s total contributions should not exceed the limits on tax relief for pension contributions. Total contributions include ordinary contributions, Additional Voluntary Contributions (AVCs) and special contributions.
This section will explain the different pension funds and schemes that are available to your employee. It will also help you calculate their net pay.
Next: Types of pension contributions