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Finance Division

 

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
(TES and UPS workers only)

2.00%

CPS 

23.70%

MRC

15.90%

NHS

14.38%

USS

18.00%

Further guidance on pension schemes and rates can be found on the Pension website.


National Insurance rates

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.