# Why I cannot set the Employer Earning Basis different from Employee?

Pension providers will accept the pension contribution only if the pensionable
earning for both employer and employee are equal. Pensionable earnings will be
calculated based on the earnings basis (Qualifying Earning / All pensionable
earning / Custom) set in the application. If earnings basis are set differently,
that results in unequal amount of pensionable earnings and the pension provider
in turn will reject the submission. So that our application will allow you to
set earnings basis only for employee and the same will be automatically set for
employer by default.

For example, if the employee's gross pay is £8,000(monthly) and deduction value
is set as 1. Suppose the employee's earnings basis is set as 'All pensionable
earning' and for employer 'Qualifying Earning' i.e. £6,240(Lower level of
qualifying earnings) a month for 2024-25 tax year, the pension calculation will
be :

Pensionable Earning (Employee) = £8,000
Pensionable Earning (Employer) = (£8,000 - £6,240) = £1,760



Employer/Employee pension contribution = Pensionable earnings * Deduction value



Employee pension contribution = £8,000 1% = £80
Employer pension contribution = £1,760 1% = £17.6



Since the pensionable earnings in this scenario are different for employee and
employer, the pension provider will reject the submission.