Employer on-costs are the values paid by the employer on top of an individual's gross pay. Departments can expect to pay on-costs for pension, national insurance and the apprenticeship levy.
Deductions can be affected by personal circumstances, so please contact your School Finance Manager if on-costs are not calculating as expected. Current employer rates can be found below.
Apprenticeship Levy
The Apprenticeship Levy will be charged from April 2017.
The levy is calculated at 0.5% of NI’able pay and will be charged in the same way as Employers National Insurance. Departments will see an increase in staff costs, including those borne by research grants, trust funds, donation and trading accounts. For those staff charged to Chest funds an additional allocation will be made to cover the increase.
Pension scheme rates
|
Scheme |
Employer Rate |
|---|---|
|
Auto-enrolment Scheme |
3.00% |
|
CPS |
23.70% |
|
MRC |
16.90% |
|
NHS |
14.38% |
|
USS |
21.60% |
Further guidance on pension schemes and rates can be found on the Pension website.
National Insurance rates
From 6th April to 5th November 2022:
|
NICs category letter |
Earnings at or above the Lower Earnings Limit up to and including the Secondary Threshold |
Earnings above the Secondary Threshold up to and including the Upper Earnings Limit |
Earnings above Upper Earnings Limit |
|---|---|---|---|
|
A, B, C & J |
0% |
15.05% |
15.05% |
|
H (apprentice under 25) |
0% |
0% |
15.05% |
|
M (under 21) |
0% |
0% |
15.05% |
From 6th November 2022
|
NICs category letter |
Earnings at or above the Lower Earnings Limit up to and including the Secondary Threshold |
Earnings above the Secondary Threshold up to and including the Upper Earnings Limit |
Earnings above Upper Earnings Limit |
|---|---|---|---|
|
A, B, C & J |
0% |
13.8% |
13.8% |
|
H (apprentice under 25) |
0% |
0% |
13.8% |
|
M (under 21) |
0% |
0% |
13.8% |
Salary scales with on-costs can be found on the HR website.