Question

Pension contributions

Hello

I would be appreciate that if anyone answered my question about what is the formula for pension contributions in excel to do a payroll

I make an excel sheet to calculate a salary instead of software, I do everything good, I calculate deduction s , PA, and gross salary, NI, the last one, I don’t know about pension contributions for employees and employers

Answer 1

Pension calculation for both employees and employers contribution varies from country to country. For instance here in Nigeria, based on pension acts 2014, Pension is calculated at 8% of basic, housing and transport of salary component(I.e. (B+H+T)×8%) While the employer contribution is 10% of same BHT(I.e. basic+housing+transport × 10%). However, some company calculate the pension on the entire gross pay with 8% for employees pension contribution and 10% employers pension contribution.