Action 'needed now' on salary sacrifice to minimise disruption

LCP says early preparation will help employers navigate the transition

Jonathan Stapleton
clock • 2 min read

Employers should start preparing for the government’s cap on salary sacrifice pension contributions now in a bid to help them maximise value and minimise disruption, LCP says.

In her Budget announcement last November, then chancellor Rachel Reeves said the government would limit the amount of salary sacrifice on pension contributions to £2,000 in rules that will come into effect in 2029 In a blog – Salary sacrifice changes in 2029: what employers need to do now – LCP recommended that employers consider four key actions: Understand the impact on your business: For some employers, LCP said the additional National Insurance contribution (NIC) costs may be modest, while for others, particularly those with high levels of salary sacrifice participation, the inc...

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