Articles on: Salary Sacrifice/Exchange

What are the advantages of a Salary Exchange/Sacrifice pension scheme?

These are the 3 main benefits for workers who have a Salary Sacrifice arrangement:


  1. The pension contributions are not subject to income tax or National Insurance, making it more tax-efficient for both employer and employee.


  1. Some employers add their employer NIC savings to the pension pot, increasing the overall contribution.


  1. Your pension pot grows faster

Updated on: 09/04/2026

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