NI rise "may boost take-up of salary sacrifice"

A 1% rise in the amount of National Insurance paid by all employers, employees and self-employed people may boost interest in salary sacrifice arrangements for company pensions, according to pensions experts, as employers will be keen to keep NI costs from spiraling. Employers are currently required to pay 12.8% of each employee's salary in NI contributions - employers paying into a final salary or money purchase pay lower rates - while employees pay 10%, so rates will move up to 13.8% and 11% respectively from next April. Employers who are interested in providing employees with a r...