Changes in April pay packets
By: James Hakner
Last updated: Friday, 3 May 2019
Some staff will have noticed changes in their take-home pay this month.
There were income tax changes that affected all staff and changes to pension contributions that affected staff in the Universities Superannuation Scheme (USS).
The personal allowance – the amount you can earn before paying income tax – increased on 6 April 2019 to £12,500 (from £11,850). The threshold for paying the higher rate of income tax (which is 40 per cent) increased to £50,000 (from £46,350). This was reflected in University pay packets on 30 April.
For staff in USS, April also saw the first of three scheduled increases to pension contribution rates. This meant that, in April and from now on, USS members contribute 8.8 per cent of their salary towards their pension, up from eight per cent prior to April.
Further increases are scheduled for October 2019 (up to 10.4 per cent) and April 2020 (up to 11.7 per cent). During this time the University’s contributions will also rise considerably. Both employer and employee representatives continue to work with the USS Trustee to reach an agreement in the hope that these future increases will not be necessary.
The table below shows how much USS members will pay as a percentage of salary as well as the increase in the University’s contribution.
| April 2019 | October 2019 | April 2020 |
|---|---|---|
| Employee 8.8% | Employee 10.4% | Employee 11.4% |
| University contribution 19.5% | University contribution 22.5% | University contribution 24.2% |