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Adding a workplace pension scheme to an employee

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How to add a pension deduction to an employee in Sage Payroll.


If you have set up Pension schemes in Payroll, you can add a pension deduction to an employee. You do this when you process their pay.


 CAUTION: Each employee can have only one pension scheme deduction. If there’s an existing pension scheme assigned to them, you must remove this first.

Add pension to employees

  1. Select the Pay Runs tab, then select Process Pay Run.
  2. Continue with the process as normal until the Edit Pay stage. Enter all usual payments and deductions
  3. Select Add Deduction, then select Add a new Workplace Pension. This option is only available once you’ve created at least one pension scheme.
  4. Select the pension scheme and group. If you are using NEST pensions you also select the Payment Source you want to use.
  5. Select Save and repeat the process for any other employees who need a pension scheme.

You can delete the deduction from the employee record.  Select the cross button, next to the deduction when you process the employee pay.