Is state pension included in the NMW calculation?

Hi, I am receiving my state pension as well as working part time. I am not yet drawing down on my workplace pension and would like to continue making salary sacrifice payments in. My employers have said they cannot let my salary drop below the NMW therefore will not allow me to make the payments that i want to make into my pension - my question is can my state pension be taken into account when calculating my total income? Thanks

Hi,

The State Pension is a benefit paid by the government and not your employer. It does not count when calculating pay for National Minimum Wage purposes.

Thank you.

No, state pension is not included in the National Minimum Wage (NMW) calculation. The NMW only applies to wages earned from employment, excluding any pension benefits.

No, your state pension doesn’t count as part of your income for salary sacrifice. Salary sacrifice is based on your earned income, and it must not fall below the National Minimum Wage (NMW). You may need to adjust your salary or explore other pension contribution options.