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An example of Salary Sacrifice:-
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An employee requests that their salary be reduced by a specified amount - say £100 a month. The employer agrees and pays an extra £100 directly into the employees pension fund.
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Why do this?
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The employer and employee will both save on National Insurance contribution.
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Disadvantages of Salary Sacrifice?
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If you reduce your salary then it may affect your ability to mortgage borrow.
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It may affect your second state pension as your NI contributions have been reduced.
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It may affect your state benefits and any future redundancy payouts.
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