The majority of ProMed’s staff are casual bank staff, working as self-employed subcontractors. Nonetheless, ProMed has made a committment to be a Living Pension employer.
The Living Pension is a savings target designed to help employees build up a pension pot that will provide enough income to meet their basic everyday needs in retirement. 4 in 5, or 16 million are not saving enough each year to prevent poverty in retirement.
We’re one of the first 25 organisations to commit to paying towards a Living Pension for all our staff.
Living Pension calculation
As with our Living Wage accreditaiton, we’ve set out how we’ve calculated what we need to pay our staff, in line with our value of being clear.
The Living Pension requires employers commit to a voluntary savings level using either a cash (£2,800) or percentage (12%) target. The employer needs to contribute a minimum of 7%, or £1,630, depending on whether they use the cash or percentage target. As ProMed’s staff frequently work for several organisations within the healthcare sector, we have chosen to use the percentage target, and add this to the hourly pay that our staff receive.
For example, at the lowest real Living Wage rate, £15.45/hr:
- Working 37.5 hours per week
- Getting 12.07% holiday pay (equivalent to 5.6 weeks of paid annual leave for a full-time employee)
- Self-enrolment employer contributions are 3%, which is 36p/hr
- Additional Living Pension contributions are 4%, which is 48p/hr
- The employer contributes £1,638.00 per year into the pension pot
We think this is a good idea, how do we get involved?
We’re pleased that you want to join us in ensuring that everyone can save towards a comfortable retirement. You, too, can register your interest in the Living Pension Standard.
How do I know what I should save towards my pension?