Salary sacrifice, explained

With salary sacrifice you agree to a lower salary in exchange for a higher employer pension contribution. Because the sacrificed amount never counts as pay, it reduces both income tax and National Insurance.

That makes it more efficient than paying into a pension from your take-home — and some employers also share their NI saving with you.

Net pay and relief-at-source schemes are taxed differently, so the hub lets you pick the exact method your employer uses.