Economist Michael Wolfson noticed that since extra coverage for those with lower earnings is not needed, we should keep the replacement rate at 25 per
cent for lower earners, then use a 40 per cent replacement rate for earnings above a certain threshold.
Not exact matches
-- The top quintile (top 20 per
cent) saw their family income grow by 27 per
cent during that time (average after - tax, after - transfer family income of $ 135,500), compared to 14 per
cent for the second - highest quintile (after - tax family income of $ 73,500), nine per
cent for the second -
lowest quintile ($ 32,700) and 16 per
cent for the bottom one - fifth of income
earners (after - tax income of $ 14,600)
If Marcie's # 225 earnings are derived from being on or near the minimum wage, then there is a double hit
for her because she also can not salary sacrifice to save 12 per
cent National Insurance, if such an arrangement would take her pay below the level of the applicable minimum wage rate (# 7.83 per hour in 2018/19
for those aged 25 and over).3 Anne Fairpo said: «One of the concerns about allowing the
lowest earners to sacrifice salary has been the risk of their pay dropping below the point at which entitlement to contributory benefits is triggered (the
Lower Earnings Limit - # 116 per week in 2018/19).
Combined with the new
lower tax rate
for income between $ 45,282 and $ 90,563, even those who aren't in the top one per
cent of income -
earners should take a look at their finances to ensure they're on track.