The impact of proposed changes to salary sacrifice

November’s Autumn Budget confirmed proposed changes to salary sacrifice (or salary exchange), particularly around the level of pension contributions on which employers can claim National Insurance (NI) relief.

While the measures are not due to come into force until 6 April 2029, the legislation received Royal Assent at the end of April and became an Act. The changes are expected to have implications for both employers and employees and, as a result, advisers and paraplanners should be paying close attention.

In this Paraplanners’ Assembly recording, from 26 March 2026, host Richard Allum is joined by Barnett Waddingham’s Lucy Clark and James Jones-Tinsley to explore what the proposals could mean in practice.

Together, they cover:

• An overview of how salary sacrifice works. 
• The benefits it can provide for both employers and employees.
• Common pitfalls and how to implement arrangements effectively. 
• What the proposed changes involve and who could be affected.
• The current status of the legislation as it moves through Parliament.

With reform on the horizon, the discussion provides a clear snapshot of the current position and the key considerations for those advising on workplace pensions.