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Contractual Salary Sacrifice

Please find below 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.


Salary Sacrifice for Pension Purposes Clause

The Company operates a qualifying pension scheme which is available to you to join through a tax efficient salary sacrifice scheme. 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. 

If you are in agreement with the salary sacrifice scheme, the amount deducted from your salary will be £[amount]/[percentage] [each month] / [annually]. Your post sacrifice salary will therefore by £[amount].

In return The Company will contribute £[amount] [weekly]/[monthly] to your pension. 

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. If you choose to opt-out of the pension scheme your salary will return to the pre-sacrifice amount. 

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.

 

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