How the contributions would change under the new system

We take a look at how the proposed tax cut could affect contributions...

% Earnings Contribution change

Under 15,000 N/A no change

15-20,000 2.1% 0.6%

21-30,000 2.7% 1.2%

30-50,000 3.1% 1.6%

50-60,000 3.5% 2%

Over 60,000 3.9% 2.4%

PUBLIC sector employees paid less than 15,000 would be unaffected.

There would be a 2.1 per cent contribution for those paid between 15,000 and 21,000 under the proposals rather than the existing rate of 1.5 per cent.

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Those earning 21,000 to 30,000 would see their contribution go up from, 1.5 per cent to 2.7 per cent, while those paid between 30,000and50,000 would see their pension contributions more than double to 3.1 per cent.

Contributions paid by those earning between 50,000and 60,000would rising from 1.5 per cent 3.5 per cent.

The contribution rate for employees earning more than 60,000 would go from 1.5 per cent3.9 per cent.