I spent a bit of time trying to find the answer to this but have not had any success. If you have two PAYE jobs that are below the annual salary which counts towards a year of contributions for your state pension but added together take you above the threshold for a state pension what happens? Will that year get recognised as one of the 30 needed to contribute to your state pension or not?
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NI contributions and state pension elgibility
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Originally posted by davetza View PostI spent a bit of time trying to find the answer to this but have not had any success. If you have two PAYE jobs that are below the annual salary which counts towards a year of contributions for your state pension but added together take you above the threshold for a state pension what happens? Will that year get recognised as one of the 30 needed to contribute to your state pension or not?Public Service Posting by the BBC - Bloggs Bulls**t Corp.
Officially CUK certified - Thick as f**k. -
Originally posted by davetza View PostI spent a bit of time trying to find the answer to this but have not had any success. If you have two PAYE jobs that are below the annual salary which counts towards a year of contributions for your state pension but added together take you above the threshold for a state pension what happens? Will that year get recognised as one of the 30 needed to contribute to your state pension or not?
https://www.gov.uk/government/statis...-multiple-jobs
Quote " Those who earn less than the LEL in two or more jobs are not liable to pay NI contributions and similarly do not accrue a qualifying year towards the State Pension even if, when combined, their earnings are above the LEL. In other words, earnings from separate jobs cannot be aggregated for pension purposes."
Probably best to check on-line as Fred Bloggs says where you can also get a state pension illustration.
Last edited by Protagoras; 11 November 2022, 18:46.Comment
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Due to our stupidly complex NI and Tax system this is a bit odd - there are actually two relevant thresholds - below the LEL (£123 per week for 2022/23) you don't pay NI and you don't get any credit for pension etc.
However, between LEL and the primary threshold (£242 per week) you still don't pay NI but you do get a credit for pension etc (provided you earn this for the year).
Having 2 PAYE jobs is further complicated if they are both with the same employer as they are supposed to aggregate your NI.
https://www.gov.uk/guidance/what-to-...ore-than-1-jobLast edited by Peoplesoft bloke; 12 November 2022, 20:22.Comment
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Originally posted by Peoplesoft bloke View PostDue to our stupidly complex NI and Tax system
Just another example of unfairness in the tax and pension system, especially at a time when it seems having multiple jobs is increasingly common.
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You may be entitled to get NI credits via another means - if you are claiming UC for example, or Child benefit.
https://www.gov.uk/national-insuranc...ts/eligibilityComment
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Originally posted by Peoplesoft bloke View PostDue to our stupidly complex NI and Tax system this is a bit odd - there are actually two relevant thresholds - below the LEL (£123 per week for 2022/23) you don't pay NI and you don't get any credit for pension etc.
However, between LEL and the primary threshold (£242 per week) you still don't pay NI but you do get a credit for pension etc (provided you earn this for the year).
Having 2 PAYE jobs is further complicated if they are both with the same employer as they are supposed to aggregate your NI.
https://www.gov.uk/guidance/what-to-...ore-than-1-jobComment
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