Salary sacrifice may affect an employee's entitlement to contribution-based benefits such as the State Pension. Salary sacrifice may reduce the cash earnings on which NICs are charged. Employees may therefore pay – or be treated as paying – less or no NICs.
Note: This content is provided as general background information and should not be taken as legal advice or financial advice for your particular situation. Make sure to get individual advice on your case from your union, a source on our free help page or an independent financial advisor before taking any action.
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