Pension salary sacrifice: how it works
Understand pension salary sacrifice, National Insurance savings, trade-offs and the checks to make before changing your UK employment contract.
Last reviewed 4 September 2026
Frequently asked questions
Can anyone use pension salary sacrifice?
No. Your employer must offer it, and it cannot reduce cash pay below the National Minimum Wage.
Does salary sacrifice avoid the annual allowance?
No. The resulting employer pension contribution counts towards the annual allowance.
Can I reverse salary sacrifice?
That depends on the employment agreement. Employers commonly allow changes after specified life events or during an annual election window.