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Employee contributions to pension and insurance are deducted before income tax, so they reduce both take-home pay and taxable income. The pension deduction is compulsory saving rather than a cost, which is often overlooked.
Employee deductions
Total = gross × (pension + insurance rates) + professional tax
Tax figures are estimates based on the rates, caps and thresholds you enter. Real rules differ by jurisdiction and change every year, and personal circumstances alter the outcome. This is not tax or financial advice — confirm with a qualified adviser.
No. It goes into your own retirement account and usually earns a guaranteed or market-linked return.
Many schemes allow voluntary additional contributions at the same rate of return, which can be attractive.