Guidance
Salary sacrifice reform for pension contributions effective from 6 April 2029
This tax information and impact note is about changes to salary sacrifice for pension contributions.
Documents
Details
This measure removes the Optional Remuneration Arrangements excluded exemption for employer pension contributions for Class 1 National Insurance contributions, where salary sacrifice arrangements exceed an annual £2,000 cap, with effect from 6 April 2029.
Updates to this page
Published 4 December 2025