Salary sacrifice change to 'hit' more than three million workers

Under reforms to salary sacrifice, the amount of someone's salary that can be sacrificed via pension contributions without facing a class 1 national insurance (NI) charge will be limited to £2,000 from April 2029. The government impact assessment, published yesterday (4 December), found that 3.3 million employees sacrifice more than £2,000 of salary or bonuses. With 7.7 million total salary sacrifice users, the government set out that around 44% would be affected by the change. Of those that would be liable to pay class 1 NI contributions on salary or bonus pension contributions above...