Salary exchange

Salary exchange boosts your personal contributions even further, maximising any tax-savings as far as possible.

How does salary exchange work?

Under a salary exchange arrangement, your gross income is reduced by the amount of your personal contributions, and this money is then paid to your pension as an extra employer’s contribution, in addition to their normal payments.

All of the tax that you would have paid is automatically included in the contribution, and in addition you also save National Insurance on these amounts.

There is a limit to the amount that can be paid using salary exchange – any remaining income must not fall below the National Living Wage or National Minimum Wage.