Help Centre for Employers

What’s salary sacrifice?

Salary sacrifice can be used to save national insurance (NI) for both employee and employer.

The process involves the employee giving up a part of their pay and the employer then making a payment to the pension scheme equal to the amount given up.  The effect is that the employees’ pay is reduced by the amount given up and it is this lower amount that is used to calculate how much NI is payable.

If you offer salary sacrifice, any contributions paid to us will be treated as employer only. Therefore you need to ensure that your payroll data file shows all contributions listed in the Employer Contribution column.

If you think you’ve made a mistake calculating contributions, contact The Pensions Regulator for guidance.


NOW: Pensions has a good technical infrastructure combined with a pension product suitable for our team. We couldn’t be happier with NOW: Pensions.
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