Your HR Partner National Insurance increases can be offset by pension contributions
March 7, 2022 1:25 pmFrom April 2022, employees and employers will face a National Insurance (NI) rise of 1.25 per cent. From 2023, the tax will be renamed as a health and social care tax, to pay for the social care system. However the figure of 1.25 per cent is deceptive, because the actual increase employees and employers will have to shoulder is more like 2.5 per cent. Employees will see a greater reduction in their salary, and employers will face higher NI costs. You can, however, mitigate against these NI rises to benefit both employer and employee. Assuming you have a workplace pension in place, through salary sacrifice, where an employee agrees to reduce their gross earnings by the same amount as their pension contributions, in exchange, you...