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ARTICLE · 16 MAY 2025

Salary Sacrifice Arrangements

Travers Smith LLP
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With employer's National Insurance contributions (NICs) now at 15% and tax bands frozen, salary sacrifice arrangements are an increasingly popular choice for employees and employers looking to reduce their costs.

United KingdomEmployment and HR
Elissavet Grout
Elissavet Grout
Kulsoom Hadi
Kulsoom Hadi
Robert McGowan Stuart
Robert McGowan Stuart
Claire Prentice
Claire Prentice
Hugo Twigg
Hugo Twigg
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With employer's National Insurance contributions (NICs) now at 15% and tax bands frozen, salary sacrifice arrangements are an increasingly popular choice for employees and employers looking to reduce their costs. These arrangements involve employees "sacrificing" their right to a portion of their pre-tax salary or bonus in exchange for non-cash benefits such as pension contributions and cycle-to-work schemes. This note gives an overview of how a successful salary sacrifice arrangement is put in place and the traps to watch out for.

If you would like to learn more about salary sacrifice arrangements, please contact a member of the Travers Smith Incentives and Remuneration team. Our details can be found at the end of this briefing.

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The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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