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Posted Fri, 19 Apr 2024 11:33:05 GMT by SMH Gardezi
Good afternoon, Do employees contribute toward their pension if they are on a salary scarifies pension scheme taking into consideration the national minimum wage element, They are only earning SSP and pension deduction on it reduces the salary down further. please advise?
Posted Tue, 23 Apr 2024 13:22:55 GMT by HMRC Admin 17 Response

Hi,
 
Statutory Payments cannot be reduced for a salary sacrifice.

Salary sacrifice is the employee sacrificing their right to salary – they cannot sacrifice their right to a statutory payment.

Statutory payment must be paid in full.

The employer would need to check if the employee had a contractual entitlement to the benefit – if they did, the employer would need to continue to provide the benefit without being able to recoup the cost from the employee’s stat payments.

The employer can contact ACAS for help on whether the employee has a contractual right to a benefit.

Thank you .

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