Millions of pension savers facing salary sacrifice hit
Hull Daily Mail
|December 06, 2025
AROUND 3.3 million pension savers are on course to be clobbered by salary sacrifice changes announced in the Budget, HM Revenue and Customs (HMRC) figures indicate.
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Guidance published online by HMRC about the changes said an estimated 7.7 million employees currently use salary sacrifice to make pension contributions.
Of these, 3.3 million sacrifice more than £2,000 of salary or bonuses.
Changes announced in the Budget will mean salary-sacrificed pension contributions above an annual £2,000 threshold will no longer be exempt from national insurance (NI) from April 2029. Contributions above £2,000 will be treated as ordinary employee pension contributions in the tax system and subject to NI contributions.
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