Features FAQs Getting Started Site Map
Calendar View Grid View Expenses Extras Employer Contributions Session Types Hourly Rates Synchronising Repeating Sessions Booking Confirmation
Overview Invoice Designer Invoice Notes Branch Surgeries Templates Invoice Numbering Invoice Emailing
Pension Overview AVCs Extra Years Employee Contribution Employer Contribution Form Signing Calculation Method
Overview Downloading
PennyPerfect Today Standard Grouping Tax (Self Assesment) Charting
Session Expenses General Expenses Mileage
Installing Upgrading Multiple Copies Backups Exporting Moving computers Unable to Save Unable to Email Custom Formatting Shortcut Keys Security Printing What is PDF Column Details Useful Links

Employer Pension Contribution

Employer Pension Contribution in England and Wales

The employer pension contributions are paid by the employer to the locum. The locum must invoice the employer for these then pass these employer contributions along with their own contributions to the pension provider.

The employer pension contribution is only included on a Session and therefore on the pension forms if the checkbox 'Employer Pension Contribution' on the Session has been checked.

Employer Contribution Rate Changes

The employer pension contribution rate can be changed on the Options screen on the Pension tab. To change the contribution rate;

  1. From the PennyPerfect menu select Tools then Options.
  2. On the Options dialogue that opens click on the Pension tab, then the Employer sub tab.
  3. Change the employer contribution rate as appropriate.
  4. Click on the [OK] button to close the Options window.

This new rate is only used for new sessions and forms created. If this new rate is to be used for sessions that have already been created the session needs to be edited to force a recalculation of the pension contribution. This is explained in more detail on this page.

Changing employer contribution rate

Calculation Method

The employer contribution is 14.38% of pensionable pay (before 1 April 2017 it was 14.3%). Pensionable pay is 90% of the the Session fee for NHS Normal sessions and 100% of the Session fee for NHS OOH Sessions. The Session fee is the Session Rate + Extras. Expenses are not included in the pension calculation.

Example 1 - Most basic case

No Extras. No Expenses.
Session Rate£100.00
Pensionable pay (90% of the Session Fee)£90.00
Employer Pension Contribution (14.38% of the Pensionable pay)£12.94
Total (Session Fee + Employer Pension Contribution)£112.94

Example 2 - Including Extras

Extra charge for home visit (which is pensionable). No expenses.
Session Rate£100.00
Home visit£20.00
Session Fee (Rate + Extras)£120.00
Pensionable pay (90% of the Session Fee)£108.00
Employer Pension Contribution (14.38% of the Pensionable pay)£15.53
Total (Session Fee + Employer Pension Contribution)£135.53

Example 3 - Including Extras and Expenses

Extra charge for home visit (which is pensionable). Expenses included (not pensionable, so not included in the pension calculation).
Session Rate£100.00
Home visit£20.00
Session Fee (Rate + Extras)£120.00
Pensionable pay (90% of the Session Fee)£108.00
Employer Pension Contribution (14.38% of the Pensionable pay)£15.53
Expense - travel to and from Practice£8.50
Total (Session Fee + Employer Pension Contribution + Expenses)£144.03

Pension legislation is complex and subject to change. PennyPerfect make no claim the information represented here is correct, or that the pension calculations within the PennyPerfect software are correct.