15 December 2019
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PSE: example payslips

The examples below show you how a payslip might appear before and after you are enrolled into PSE. The examples are for illustration purposes only.

Monthly-paid employees

In both scenarios below, we have shown an employee who is paid monthly and who earns a basic pay of £1833.33 a month.

Scenario 1

In scenario 1, we look at a member of the RMDCP who is contributing 4% each month.

Before taking part in PSE

pse monthly before RMCDP

Here you are making a personal contribution to your pension, shown as ‘RMCDP 4% EE’.

After PSE

pse monthly after RMDCP

  • Here, you no longer make a personal contribution to your pension. We pay an increased employer contribution so that the same total amount is paid into your pension.
  • Because your basic pay has reduced, you start paying lower National Insurance contributions (NICs). Here NICs have reduced by £8.80.
  • Your take-home pay increases by the same amount you save in NICs. Here it has increased by £8.80.

Scenario 2

In scenario 2, we look at a member of the RMPP.

Before PSE

pse monthly before RMPP

Here you are making a personal contribution to your pension, shown as ‘RMPP C EE’. 

After PSE

pse monthly after RMPP

  • Here, you no longer make a personal contribution to your pension. We pay an increased employer contribution so that the same total amount is paid into your pension.
  • Because your basic pay has reduced, you start paying lower NICs. Here NICs have reduced by £10.45.
  • Your take-home pay increases by the same amount you save in NICs. Here it has increased by £10.45.

All amounts shown above are based on 2015-2016 figures for tax and NICs. These may change in the future in line with changes in the law.

The tax paid and NICs figures used above are examples only. The exact amount of income tax and NICs you pay depends on your circumstances at the time and in the tax year as a whole, including whether you are paid weekly or monthly.

Weekly-paid employees

For examples of how your payslip may look before and after PSE, please see pages 10-14 of 'Your guide to Royal Mail pension salary exchange'.