About Salary Sacrifice

The key benefit of salary sacrifice as part of your flexible benefits offer is that the NICs relating to the sacrificed amount can be saved, allowing you to administer the benefit out of the savings.

An example of how salary sacrifice benefits can be advantageous to your business is shown in the following table, which details the savings you can make with a salary sacrifice pension:

Example of savings to be made with Salary Sacrifice
Number of employees in the scheme 100
Average salary of employees £30,000
Employee contributions 5% of salary
Savings in NI at 12.8% £19,200 per year
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