What's the benefit of Salary Sacrifice for employers?

For employer use only

Employers benefit from salary sacrifice by reducing the amount of National Insurance Contributions (NICs) they pay. Employers pay NICs on employees' salaries, but not their pension contributions. Salary sacrifice effectively reduces the employees' salaries and the employer pays less in NICs.

For more information on salary sacrifice please speak to an adviser or visit the HM Revenue & Customs website(Opens new window).

This is based on our understanding of current taxation law and HM Revenue & Customs practice, which may change.