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Thread: Salary sacrifice for pension

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  1. #1
    Master
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    Sounds extremely ungrateful to me. Particularly as it something the employer would be paying rather than them.

  2. #2
    Quote Originally Posted by Gav View Post
    Sounds extremely ungrateful to me. Particularly as it something the employer would be paying rather than them.
    That was my thought.

    But having been an employer for 25 years I acknowledge that I have forgotten what it feels like to be an employee so was just wondering if I was being harsh thinking of the ingratitude


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  3. #3
    Master murkeywaters's Avatar
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    I suppose it depends on the level of generosity of the bonus, if you gave minimum amount then the employee might be a bit peeved that their hard work is not being recognised so want the NI added, if on the other hand you have been generous then yes it is ungrateful and could well damage their career but some people cant look past their own nose when money is concerned.

  4. #4
    Master
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    I wouldn’t say the employee is being ungrateful - just financially astute. They will have probably read it on a financial forum or newspaper article, or heard it on the television from someone like Martin Lewis, encouraging employees to speak to their employer about the NI saving and ask if they are happy to give them that element as effectively it’s nil cost to the business. Of course it depends on how they asked you I guess?

    As someone who has set up a number of group personal pensions in the past for businesses (especially when it was optionally, but due to become mandatory), I used to suggest the employer utilising the NI saving as a suggestion for various reasons - as I said earlier, nil cost for one, employer could kind badge it up as a small pay rise and could if anything may make the employee more loyal to the business. From memory I’d say about 1/3rd or slightly more employers agreed.

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