National Minimum Wage and Salary Sacrifice
You may be aware that Nuffield Health operates an arrangement whereby pension contributions are paid via salary sacrifice. This arrangement provides a small National Insurance saving to both the Employer and pension scheme members.
With changes in the national minimum wage, Nuffield Health has increased the earnings threshold for admission into a salary sacrifice arrangement to £20,000. Operating a salary sacrifice arrangement below this threshold may reduce your earnings below the minimum wage, which is not permitted under law. The £20,000 threshold is based upon total salary received from all of your salaried job roles with Nuffield Health.
If your earnings are currently below this threshold amount, your contributions have been restored to normal Employer and Employee contributions from 1 October 2017 and you may notice a small increase in National Insurance on your payslip following the change. Your pension contribution will be ‘Nuffield GPP’ in the deductions section of your October payslip.
Please note that the percentage pension contribution paid by you and Nuffield Health remains unchanged.
If your earnings are currently above the threshold, your contributions will be paid via salary sacrifice from 1 October 2017 and will be ‘Salary Sacrifice GPP’ in the payments section of your payslip.
The Pensions Team will continue to assess your eligibility for salary sacrifice against the £20,000 salary threshold in the future.
For more information, please visit: https://www.nuffieldhealth.com/mybenefits/salary-sacrifice