From April 2029, employer pension contributions over £2,000 per year made via salary sacrifice will become subject to National Insurance contributions. Most employees will be unaffected.
A Bill to Make provision to amend section 4 of the Social Security Contributions and Benefits Act 1992, and section 4 of the Social Security Contributions and Benefits (Northern Ireland) Act 1992, so that amounts of salary sacrificed for employer pensions contributions pursuant to optional remuneration arrangements are liable to national insurance contributions.
Status: Act of Parliament
Current House: Unassigned
Stage: Royal Assent
Sponsored by: Rachel Reeves, Lord Livermore
Introduced: 2025-12-04
Royal Assent: 2026-04-29