Umbrella employees – how we calculate your pay

Umbrella employees – how we calculate your pay

Nov 14, 2018

If you are considering switching to our Umbrella employment solution or wish to compare the difference it would make to your current take-home pay, then you will need to understand how your pay as an Umbrella employee would be calculated.

The main point to note is that being an Umbrella employee is very much like being a regular employee in that you receive a monthly payslip detailing your gross income, your various deductions and your net income total.

Your payslip will detail a resume of your total income for the week. It will also detail other payments and deductions.

Deductions are likely to include:

  • Retained income – this is the margin we retain for providing an Umbrella service
  • National Insurance
  • Apprenticeship Levy
  • Pension Contributions (optional)
  • Holiday Pay (you accrue holiday pay to cover time off, just like a regular employee)
  • Income tax

You may also be entitled to additional payments including:

  • Profit related pay
  • Reimbursement for expenses

If you are already an Umbrella employee of Crest Plus, you will have received detailed pay illustrations before you joined.

Our sample payslips contain an additional page which explains the meaning behind some of the payments and deductions, so there should be no room for confusion.  However, if there is anything you wish to clarify at any point, please do get in touch with a member of our team.

It should be noted that contracting through your own limited company usually provides the best take-home pay when contracting, though it is not a suitable option for everyone.

While your take-home pay may be less as an employee of an Umbrella company, you will benefit from peace of mind knowing that you are working compliantly.

You will also be entitled to holiday pay and paid maternity/paternity/adoption leave; have the benefit of free personal accident insurance and you’ll have the option to join our company pension scheme, helping you to plan for your future.

You can find out more about the Crest Plus Umbrella service, or get in touch to discuss your working arrangements with a member of our expert team.

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