Pensions industry slams salary sacrifice changes as 'counterintuitive' and 'deeply misguided'

In her Budget speech today (26 November), the chancellor confirmed the government would cap the amount of someone's salary that can be sacrificed through pension contributions without incurring national insurance (NI) payments at £2,000 – a move the Office for Budget Responsibility (OBR) said is forecast to raise an additional £43.7bn. HM Treasury confirmed that salary-sacrificed pension contributions above £2,000 will be treated as ordinary employee pension contributions in the tax system and therefore be subject to both employer and employee NI contributions (NICs). It added that ordin...