09 October 2023

The latest Quick Poll is now available on the CIPP’s news page. The CIPP want to know if you would welcome an easement which will allow workers to go under the national minimum wage (NMW) rates in order to contribute to a workplace pension via salary sacrifice.

Employers that provide salary sacrifice schemes must ensure that the salary sacrifice does not cause a worker's pay to drop below minimum wage rates.

The ‘yet to be published’ CIPP Benchmarking Report 2023 found that the number of people using salary sacrifice as a way to contribute to a workplace pension, has reduced, due to the increased NMW rates. This means that:

  • people who were previously paid above the National Living Wage (NLW) are now in fact being paid at the NLW, therefore, they are unable to use a salary sacrifice pension scheme
  • salary sacrifice is a great way for lower earners to save on their income tax bill, but unfortunately, this is something that seems to defeat the purposes and intention of salary sacrifice schemes.

The policy team are working in the background to raise awareness about this and are wanting to make changes, through various government forums, so watch this space.

Have your say and take part in the Quick Poll now. The Quick Poll should take less than a minute to respond to, and we would like to thank you in advance for your participation.


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