PBR: NI hike could boost salary sacrifice take-up

However, the firm says higher earners should consider their options carefully, as they may fall foul of new restrictions to pension tax relief. Salary sacrifice schemes allow employees to save on National Insurance contributions by having their employer place part of their annual salary directly into a pension fund. The increase in NI means employees can save an additional 1% by using the schemes, and they are likely to become more popular from 2011 onwards. Andrew Tully, senior pensions policy manager at Standard Life, says: "Putting in place a salary or bonus sacrifice arrangemen...