Salary Sacrifice - worse off?

Polarbeary

Hi,

I'm working as a contractor - salary 29k a year. I've opted into the pension scheme and pay 3% in and my employer pay 6%.

If I went for the salary sacrifice option of giving up £850 a year would my take home pay increase? Confused!

xylophone

http://www.icalculator.info/terminology/salary_sacrifice.html

might be worth a look.

Baby_Angel

Just recently we were informed of this. As far as I understood this, based on employee and employer contribution of 4% each, my annual net take-home pay should be slightly more. The contributions to the pension itself would be exactly the same. Based on a £35000 gross pay the example showed to us will give you about £168 more (take home pay) annually.

atush

Salary sacrifice saves you money as you dont pay nics on the income. So w/o salary sacrifce you do.

So using SS will mean instead the nics you would have paid will be in your pay packet.