Salary Sacrifice

In recruiter context

Common for UK pension contributions (most useful), cycle-to-work schemes, electric vehicle leases, and childcare vouchers (legacy). If you sacrifice £5,000 of salary into pension, you save 40% income tax + 2% NI = £2,100/year for a higher-rate payer; the employer also saves 13.8% NI which some companies share. The catch: the lower salary affects mortgage assessments, statutory maternity pay calculations, and life insurance multiples. Salary sacrifice for pension is one of the highest-return moves available to UK earners — particularly between £100k and £125k where the marginal rate hits 60% due to Personal Allowance taper.