Salary Sacrifice - Pension Contribution | AccountingWEB

Salary Sacrifice - Pension Contribution

We pay £600 per month to an employees personal pension scheme and have treated the payment as Salary Sacrifice through Sage Payroll.

The payment is deducted from Gross salary and the Income Tax and National Insurance amounts are therefore less than if it was made directly from Net pay.

The question is, are we able to make a payment to an employee's pension scheme (which has nothing to do with us as employer) through salary sacrifice or is salary sacrifice only available for contributions made to an employer-related pension scheme?

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Change of employment contract,

tom123 |