Salary Sacrifice - General Information

Salary sacrifice is an agreement between you and your employer in which you give up part of your salary in exchange for extra benefits. The agreement between you and your employer will change the terms of your employment contract, and reduce your entitlement to cash pay.

The sacrifice of cash is made in return for some form of non-cash benefit.

As you will be earning a lower salary, you may pay less tax, National Insurance, and pension contributions.

This factsheet provides further details.