Reference Pay

Reference Pay is simply your earnings before Salary Exchange. That is, your Reference Pay is the amount of gross earnings that would apply if Salary Exchange was not being used. Reference Pay is used to calculate the level of some employment benefits. For example, contributions to the pension plan will be based upon Reference Pay.

While employers usually calculate the employee benefits they provide on the Reference Pay it is important to note that any salary-related State Benefits* and Statutory Payments will continue to be based on the revised gross earnings after Salary Exchange.

* State pension, sick pay and most common state benefits are no longer directly related to your pay and as such you should not be disadvantaged in any way by the salary exchange offered.

By default, when an employer uses Mintago they agree to cover all salary-related benefits with reference pay, such as (but not limited to):

If your employer has enhanced pay-related benefits, such as enhanced-maternity leave, this will not override that and you should refer to your employee handbook for guidance.

This will depend on your lender's criteria and you should seek guidance from them as to the figures they require. For more information see the separate FAQ on Salary exchange and mortgages.