Salary exchange (also known as ‘salary sacrifice’) is an arrangement where an employee agrees to give up part of their salary in exchange for an additional pension contribution from their employer.
Under current legislation, this enables businesses of all sizes to make significant National Insurance Contribution (NIC) savings. Employers will usually make savings of 13.8% of the amount of salary exchanged. Employees will also benefit - by using salary exchange they will save NICs as well.
BBS can advise on whether salary exchange is suitable for your business and analyse your workforce to estimate the potential level of savings. We can then help you introduce salary exchange and communicate this effectively to your workforce to help maximise take-up and savings – for both you and your employees.
For more information on the potential benefits of introducing salary exchange for your workplace pension scheme, please download our salary exchange and governance brochure or click here to make an enquiry.