Pension salary
sacrifice
Maximise business savings and employee benefits
with a quick fire pension contribution solution.
Think pensions. Think Maji.
What is pension salary sacrifice?
Pension salary sacrifice is a cost-effective way for employers to enhance their employee benefits package while saving on National Insurance (NI) contributions. By allowing employees to exchange a portion of their gross salary for additional pension contributions, you can offer a tax-efficient solution that boosts retirement savings for your workforce and reduces your business expenses.
The benefits of salary sacrifice schemes
Reduce NI and tax liability
Use our savings calculator to see how much your business can save.
Increase take-home pay for employees
Help employees keep more of what they earn through tax-efficient benefits
Attract and retain top talent
Stand out in the market with a benefits package that employees love.
Boost employee wellbeing
Reduce stress and empower your team with tools and education for financial security.
Or calculate your potential savings here 
How pension salary sacrifice works
A pension salary sacrifice scheme is quick and easy to implement – and a great place to start as part of your employee benefits strategy. Here’s how it works:
Employee agreement
Employees agree to a change in how their pension contributions are paid. You as the employer will pay their pension contributions for them, and exchange the amount out of their gross salary.
National Insurance savings
The exchanged or sacrificed amount reduces the employees’ taxable salary. Their NI tax bill goes down, and so does yours.
Money to invest
Employers can reinvest NI savings into employees’ benefits or other business priorities.
Think you’re missing out on savings? We get our clients set up in days!
Calculate your savings
Use our NI savings calculator below to instantly estimate your tax savings by offering salary sacrifice benefits.
Schemes
Savings
Number of employees taking up benefit
Pension salary sacrifice
£0
Pension coaching
£0
0
Workplace nursery
£0
Electric car
£0
Cycle to work
£0
Total savings p/a
£0
Estimates are based on certain assumptions
Assumptions
- Assume pension contributions on full salary, with average employee contribution of 5%
- On average 40% of employees increase pension contributions from pension coaching
- UK average nursery fees of £15,600pa. On average 7% of employees have children at nursery
- Average savings per car leased are £1000 pa
- UK average spend on cycle equipment is £900
- NI rate of 15%
Why Maji?
With Maji’s expertise in supporting SMEs with valuable financial wellbeing technology, this partnership delivers a solution that works for you, your employees, and your bottom line.
Maji embeds the pension into an employee’s financial journey, improving engagement through a holistic financial planning experience, coaching journeys, connection with financial experts and masterclasses. As part of our service offering, you’re guaranteed:
Seamless Setup
Our team handles everything from design to implementation with minimal disruption.
Compliance Expertise
We ensure your scheme meets all regulatory requirements and is HMRC compliant.
Tailored Solutions
Our solution is customised to fit your organisation’s needs and workforces’ varying demographics
Proven Impact
Enhance employee engagement and retention while delivering measurable savings
Think beyond pensions. Think Maji.
Financial wellbeing is complex but we’ve got a simple solution fitted for every business and employee profile.
Here’s what you can get from Maji as part of our financial wellbeing platform:
✔ Salary sacrifice schemes
Pension salary sacrifice
Childcare salary sacrifice
Cycle to work
Home and tech purchases
Electric cars
✔ Money management tools for your employees
Financial education resources
Access to our academy with on-demand learning modules. Webinars and guides to empower employees financially
Financial planning and budgeting tools
Access to our budget tracking tool to identify weak points in your spending habits. Financial planning tools for future readiness
Pension coaching that boosts savings
Access to our pension coaching programme that helps employees build a secure future and increases your NI savings by 50%
Exclusive retail deals and discounts
Exclusive deals and discount offers from leading retail brands including grocery stores like Tesco, Asda and Sainsbury’s
✔ Access to money experts
Unlimited 1-1 financial coaching sessions
Expert guidance from certified financial coaches who help shape a financial plan
Free sessions with a mortgage advisor
Expert support to help employees navigate and manage the complexities of home buying
Free sessions with a financial advisor
Access to certified financial experts to support employees with financial uncertainties
Discounts on wills and will writing services
Ensure your employees are safeguarded with affordable estate planning solutions and will writing services
✔ All-in-one benefits hub
Access all your benefits in one place with ease. Add, edit, or manage your benefits seamlessly, whether they’re within or outside of the Maji offering.
Got questions? Read up on the Maji blog
Top 4 things to avoid for a successful salary sacrifice switch!
It’s tempting to think about implementing salary sacrifice without any external help. After all, what could be so hard about getting people to take part in a scheme that saves them money? But going it alone can be stressful and lead to poor results.
Salary sacrifice for employers: what you should know
When it comes to making contributions to your employees’ pensions, it’s the most tax efficient way, saving both you and your employees money. It’s such a win-win that 85% of very large companies are using the scheme. But for smaller businesses, it can seem difficult to implement.
Think pensions. Think Maji.
The easiest way to get started is to book a meeting with our team who can answer any questions or map out your potential savings depending on your requirements.
From there, we’ll send you a proposal to take to your business.
Frequently Asked Questions
Salary sacrifice is a voluntary arrangement where your employees agree to reduce their gross salary in exchange for a specific benefit that you provide as their employer.
Pension salary sacrifice is an arrangement where employees agree to reduce their gross salary, and in return, you, as their employer, contribute the equivalent amount (or more) directly into their pension. This arrangement benefits both you and your employees by reducing National Insurance contributions.
National Insurance savings: Reduce your employer National Insurance contributions (currently 13.8%, with potential increases in the future).
Cost-neutral benefits: Use your NI savings to offset the cost of other employee benefits or enhance pension contributions.
Boost recruitment and retention: Offering enhanced pension schemes shows your commitment to employees’ financial futures.
Higher take-home pay: Employees pay less in National Insurance, increasing their disposable income.
Boosted pension contributions: Employees can grow their pension pot faster with the tax-efficient setup.
Long-term financial security: It helps employees save more effectively for retirement.
Impact on employee benefits: A reduced gross salary could affect eligibility for benefits like statutory sick pay, maternity/paternity pay, or mortgage applications for employees.
Compliance: HMRC regulations must be followed to ensure the scheme is implemented correctly.
Employee understanding: Clear communication is essential to help employees see the value of the scheme.
Book a meeting to decide on your package and sign the agreement. From there, you’ll be able to setup a 1 hour implementation call, then we handle all the rest…
Implementing a salary sacrifice scheme involves a few straightforward steps. First, we’ll help you review your business structure and employee needs to determine the best benefits to offer. We’ll then support you in communicating these benefits to your team. Our team will assist with the HR, legal, culture and payroll implications, provide all necessary documentation, and ensure compliance with HMRC guidelines. We make the process seamless, so you can start offering valuable benefits with minimal hassle.
Yes! We offer a user-friendly app that allows employees to easily manage their salary sacrifice benefits. They can access their savings, review the benefits available to them, and make adjustments directly from their phones. The app also provides updates on their contributions and savings, making it easier than ever to stay on top of their benefits.
Absolutely! One of the key advantages of salary sacrifice is its flexibility. You can add a variety of benefits to your package, such as childcare, pension contributions, cycle-to-work schemes, and more. As your company grows or your employee needs change, we can work with you to tailor and expand your benefits offering to maximize employee satisfaction and retention.
