Pension Salary Sacrifice is a mechanism where an employee sacrifices part of their pay for a non-cash benefit. This being an increased employer contribution, equivalent to the employee’s sacrifice.

Salary Sacrifice offers several benefits to employers and employees:

1. Employers save on employer National Insurance Contributions (NIC) as employer NIC is based on the employee's lower salary after the pension contribution (the employee salary sacrifice).

2. Employees will save on NIC and tax because their income is reduced by the amount they sacrifice for an employer pension contribution. Higher and additional rate taxpayers no longer have to reclaim the higher or additional rate relief through self-assessment.

3. It can make the overall benefits package more attractive to employees, aiding in employee retention and recruitment.

Salary sacrifice may not be suitable for everyone. Our consultants take into consideration various factors – such as the national minimum wage – and assess the suitability of salary sacrifice based on the specific demographic.

Our experienced consultants work with organisations to offer alternative solutions for your higher earners and bespoke/alternative contribution basis, to meet the needs of your employees and the business, whilst you maintain your pension employer duties.

Under automatic enrolment, also known as auto-enrolment, all UK employers are legally required to set up a workplace pension, enrol certain employees into it and contribute towards their pension savings. It is designed to ensure more workers have access to a workplace pension scheme, enabling them to save towards their retirement.

We work with you to ensure all eligible employees are automatically enrolled and appropriate contribution level requirements are chosen based upon legislation. We will support you on your regulatory elements, such as ensure the completion of your declaration of compliance.