We calculate the contribution on this portion of your salary

Your defined contribution is determined on a portion of your gross salary. Part of the salary is sometimes not taken into account for pension accrual. For more information, refer to Section 2 of the Talent Pension Rules. The salary that counts towards pension accrual is called the pensionable salary. The defined contribution is 20% your pensionable salary minus the deductible (the portion of the salary on which you do not accrue pension because you are getting a state pension).

Mr Smith earns €600.00 in a 40-hour working week. The deductible that week is 40 hours x €9.24 = €369.60 and the pension basis is then: €600.00 - €369.60 = €230.40.

The defined contribution for Mr Smith's pension plan in that week is: €230.40 x 20% = €46.08