Salary sacrifice (or exchange)
This is a government-approved process (pensions are exempt from the April 2017 clamp down on salary sacrifice schemes announced in the Chancellor’s 2016 Autumn Statement) that’s been used by many employers. In short, by reducing the employee’s salary by the amount of their pension contribution, National Insurance contributions aren’t payable on the amount of salary given up or ‘exchanged’. Both you and your employees are better off as a result. Take a look at how much you could save:

Annual Employer Pension Cost Savings


The examples shown above are based on employees receiving national average earnings with minimum contributions for auto-enrolment being paid.

Postponement
You can choose to delay when you start auto-enrolment by up to three months not just at outset, but also for all new employees. This can create significant cost savings too: