NI contributions on pension contributions

[levers]

Hello. My wife and I both work for different employers. Both our employers offer a group personal pension plan in which the company pays a contribution and we can also choose to pay extra contributions, which we both do. Both schemes are not contracted out of serps.

On my payslip, my NI contributions are calculated on my entire gross salary whereas on my wifeÂ’s payslip, her NI contributions are calculated on her salary minus her personal pension contributions.

My understanding was that pension contributions are not deductible for NI purposes, so does that mean my wifeÂ’s employer is not doing the calculation correctly, or are there other factors regarding the pension contributions which affect whether you pay NI on them or not?

Thanks
Andy

[Aldur]

Your wife's calculation is incorrect.

However you would both probably be better off if you did a 'salary sacrifice' and the employer paid all the pension contribution. This saves both of you National Insurance.

I've never been able to fathom out why more companies don't offer the facility. Perhaps they like paying NI or something.

NeilW