Salary Exchange isn’t a new concept. But since the April 2018 increases in minimum automatic enrolment pension contributions, there’s more reason than ever to be using Salary Exchange as a contributions vehicle.
See how much your company could be saving by using our savings calculator below. Then work out what you want to do with the spare cash!
Salary Exchange is a way that you and your employees can reduce your National Insurance payments on employee pension contributions. An agreement is made between you and your employees enabling you to exchange part of their gross salary for an employer pension contribution. Making pension contributions through Salary Exchange rather than directly from salary will effectively reduce the amount of National Insurance contributions that is paid by both you and your employees.
Use our savings calculator below to work out your potential savings. Remember, every month that goes by will potentially be missing out on savings. Talk to us to find out how we can help you implement Salary Exchange as quickly and painlessly as possible.
Please remember, the calculator below is based on our understanding of current taxation, legislation and HM Revenue & Customs practice all of which is subject to change without notice
We worked with a high street retailer with 1,600 employees making pension provision via auto-enrolment to identify savings of £109,000 in the first year through Salary Exchange. We then designed an enhanced benefits package for employees using the money saved. End result? Company savings and a happier workforce.