It’s here! Clipper Contracting Group launches salary sacrifice pension for workers

What is a salary sacrifice pension?

A salary sacrifice pension scheme allows you to exchange part of your salary for an equivalent employer pension contribution, reducing National Insurance for both you and your employer. It is a tax efficient way to put more money into your pension pot.

A standard workplace pension involves both you and your employer making contributions from your salary, with your own contributions typically taken from your pay after tax. A salary sacrifice pension works differently: instead of making pension contributions from your take-home pay, you agree to give up (or "sacrifice") part of your salary, and your employer pays that amount directly into your pension instead. We will also pass on the Employer’s NI saving we make, further increasing your pension contributions.

Illustration of Clipper Contracting Group's salary sacrifice pension scheme, highlighting reduced tax and National Insurance payments and the benefit of additional employer contributions to boost retirement savings.

Benefits of a salary sacrifice pension

With a chronic under-saving crisis occurring, tomorrow’s pensioners are likely to be worse off relative to those who retire today. Contributing to a pension full-stop is a great benefit.

A salary sacrifice pension turbo charges this. It allows you to maximise the savings you can make for retirement in a tax efficient way.

💸Lower Tax and NI contributions; maximise your pension pot using the savings you make here

💰Enhanced employer contributions; we contribute the Employer NI savings we make from your lower, sacrificed salary into your pension, boosting your retirement savings

💷 Tax planning; for those on the cusp of a higher tax banding, reducing your salary through a salary sacrifice pension can take you back below the threshold, saving you from paying a higher rate of tax.

Things to consider before moving ahead

It's worth noting that a lower official salary could, in some cases, affect salary-linked benefits such as mortgage applications, statutory sick pay, or certain state benefits, so it's worth considering your personal circumstances before opting in.

If you’re unsure whether salary sacrifice is for you, we would recommend you speak to a financial adviser or visit ‘MoneyHelper’, a government backed guidance advice site.

Want to take advantage of a salary sacrifice pension?

Salary sacrifice pension with Clipper Contracting is really easy to get up and running. We partner with Jarvis Pension, a dedicated, tech first provider. You can download their app to manage your pension.

Give our team a call on 10305 233170; they will guide you through the steps and provide you an illustration comparing different scenarios. Sacrificing salary in any context involves a formal agreement between the employer and the employee. We therefore need to ensure you have understood how much of your salary you are wishing to sacrifice. Once you are happy, you can accept our agreement via an email link and pension salary sacrifice will apply from your next payment. Note that you'll need to be part of our Clipper Plus worker benefits for salary sacrifice administration to occur.

The payment will be transferred to Jarvis Pension and you can watch your pension pot grow!

Call us on 01305 233170 or email contactus@clippercontracting.co.uk with ‘Salary sacrifice’ in the subject to find out more.