Glossary · UK
What is Pensionable Pay?
The definition of pay a pension scheme actually uses to calculate contributions.
Full Definition
Pensionable pay is the definition of earnings that a specific workplace pension scheme uses as the basis for calculating contributions, which employers can set (subject to statutory minimums) rather than always using the standard qualifying earnings band. Some schemes use basic pay only, others use total pay including bonuses and overtime — the choice affects both the contribution amount and, for defined benefit schemes, the pension ultimately accrued.
Related Calculators
See Also
Disclaimer: Definitions are for guidance only. For decisions about your tax, savings, property or pension situation, always consult a qualified professional or refer to gov.uk.