In an attempt to offset pension costs, many employers have sought to introduce salary sacrifice, also known as ‘salary exchange’, as a vehicle for pension contributions.
What is Salary Sacrifice?
Salary sacrifice is where an employee exchanges part of their salary for a non-cash benefit – pension contributions, for example. Both employee and employer will make savings as National Insurance contributions are deducted on the reduced salary – not the proportion of salary that is exchanged for pension contributions. Salary exchange is a rare win-win benefit.
Employees can be ‘positively enrolled’ into salary exchange, meaning no consent is required. GJH Pensions can guide you through the implementation complexities of salary exchange, and ensure optimal savings are realised.
Contact GJH Pensions today for a free consultation on 07446 148 537 or email firstname.lastname@example.org.