How Does the Salary Sacrifice Work: Updated Rules and Changes as Reeves Releases UK Budget

Source: International Business Times

What is Salary Sacrifice and how will it affect UK workers? Chancellor Rachel Reeves' Budget announcement has confirmed a significant change to the way salary sacrifice pension contributions will be treated in the United Kingdom. From April 2029, workers who use salary sacrifice to boost their pensions will only receive National Insurance (NI) relief on the first £2,000 (approximately $2,600) of sacrificed income each year. The measure marks one of the most substantial reforms to pension tax treatment in over a decade.