Management Information Sheet
Changes to take home pay from April
Ahead of payday please remind all staff in your school that their take home pay will change in April if they are below State Pension age and in a work pension like the Teachers' or Local Government Pension Schemes. This is because the new State Pension and the end of 'contracting out of the Additional State Pension', means they no longer get a 1.4% National Insurance Contribution (NIC) rebate for being in a contracted out work pension scheme.
Staff can use the NI Contributions calculator on the HMRC website for an indication of how much more NI they'll pay. (Click start again, bottom left of the screen to use it). Most employees will move from NI category letter D to letter A. The calculator is based on 2015/16 rates but gives an indication of the extra cost.
Anyone not in a work pension scheme isn't affected by this change.
Employer NIC rates also change as employer's no longer get a 3.4% rebate.