Pension Deductions and Statutory Entitlements

When you’re receiving statutory payments (such as Statutory Maternity Pay, Paternity Pay, Adoption Pay, Shared Parental Pay, or Sick Pay), pension contributions can still apply—but only for workplace pensions covered under auto-enrolment rules.

Workplace Pension Contributions

The standard auto-enrolment contribution rates:

• Employer: 3%
• Employee: 5%

These contributions are still calculated and deducted from your statutory pay (for example, Statutory Maternity Pay), unless you’ve opted out of the workplace pension scheme.

The idea is to keep your pension savings consistent, even when you’re on statutory leave.

Private Pension Deductions

If you have a private pension arrangement (such as one managed separately by Nasa Umbrella or another provider), deductions cannot be taken from statutory payments.

This is because statutory payments (like SMP or SSP) are treated differently under tax and payroll law — private pension deductions aren’t legally permitted from them.

Therefore, private pension contributions are paused until you return to normal pay (i.e., when you start earning regular wages again).