What are my options when implementing salary sacrifice?

As a business, you have two main options to choose from depending on how you want you and your employees to save.

Salary exchange/salary sacrifice drives savings for both the employer and the employee. What you and your employees do with these savings will determine who benefits the most from the scheme and by how much:


Option 1: 'Split benefit' - employers and their employees have more money in their pocket

  • You, the employer, keep the NI savings made by the business as a result of the upgrade
  • Employees use their savings to increase their take-home pay
  • Therefore, employees' pension contributions remain the same

This is the standard option used when an employer uses Mintago to upgrade to salary exchange.


Option 2: 'Give back' - employers share/give back their NI savings to employees

  • As an employer, you share a portion of the NI savings made by your business as a result of implementing salary sacrifice or give these savings back to employees in their entirety. 
  • Commonly employers will use NI savings to increase their employer pension contributions in order to benefit their employees.