Salary Sacrifice for Pensions Clause
The company operates a salary sacrifice scheme to assist with pension contributions. Under this scheme you agree to sacrifice part of your salary in return for a contribution to a pension scheme by the Company on your behalf, equivalent in value to the amount of salary you have chosen to sacrifice.
If you are in agreement with the salary sacrifice scheme, the amount deducted from your salary will be in line with any amount that would otherwise have been deducted from you for personal contributions.
The Company’s contribution to your pension will, as a result of the salary sacrifice scheme, be exempt from tax deductions and national insurance contributions.
(Optional)
The Company will contribute to your pension scheme (optional: X% of) any NIC savings made as a result of this salary sacrifice scheme.
A salary sacrifice for pension purposes will only apply whilst you are an active member of the Company’s pension scheme. Opting-out of the pension scheme for any period of time will not prevent you from availing of this salary sacrifice agreement again, should you obtain membership of any Company pension scheme in the future.
Further information regarding the scheme benefits and rules can be obtained from your manager.
Activation of this salary sacrifice scheme will result in a contractual change to your salary.
Note to Employers
The above is a suggested Salary Sacrifice for Pension purposes clause, which may be used in the contract of employment.
Please note, this document is provided as guidance only and is not intended to be a substitute for specific legal, pension or tax advice.
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