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New Style ESA and employee pension deductions
- Springboard
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6 days 16 hours ago #313021 by Springboard
New Style ESA and employee pension deductions was created by Springboard
Hi I have a question regarding new style esa and permitted working.
The guidelines state: Permitted Work Limits (2025/26): You must work less than 16 hours a week and earn no more than £195.50 per week (after tax and National Insurance).
Do they take into account your employee pension deductions as these get taken off before tax and NI or do they add the pension deductions back on after tax and NIC, I just need to ensure before I apply that I do indeed earn let than £195.50 per week after tax and NIC.
many thanks
The guidelines state: Permitted Work Limits (2025/26): You must work less than 16 hours a week and earn no more than £195.50 per week (after tax and National Insurance).
Do they take into account your employee pension deductions as these get taken off before tax and NI or do they add the pension deductions back on after tax and NIC, I just need to ensure before I apply that I do indeed earn let than £195.50 per week after tax and NIC.
many thanks
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- David
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6 days 15 hours ago #313024 by David
Nothing on this board constitutes legal advice - always consult a professional about specific problems
Replied by David on topic New Style ESA and employee pension deductions
Hi Springboard
Thanks for your question. In general the DWP when calculating wages to be taken into account for Benefit purposes disregard only half the pension as you will see from the link.
I cannot find any exemption for Permitted Work.
assets.publishing.service.gov.uk/media/6...477f/dmg-Chap-49.pdf
David
Thanks for your question. In general the DWP when calculating wages to be taken into account for Benefit purposes disregard only half the pension as you will see from the link.
I cannot find any exemption for Permitted Work.
assets.publishing.service.gov.uk/media/6...477f/dmg-Chap-49.pdf
David
Nothing on this board constitutes legal advice - always consult a professional about specific problems
The following user(s) said Thank You: Springboard
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- traceytracey
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1 day 10 hours ago #313104 by traceytracey
Replied by traceytracey on topic New Style ESA and employee pension deductions
Hi just so you are aware ( you probably know) you have to fill out a permitted work forw PW1 to make sure that what work you do is in fact permitted. just FYI. good luck
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