Prospect members lobby MPs about salary sacrifice restrictions

The 2025 Budget announced that employer and employee NICs would be due on pension contributions above £2,000 a year made through salary sacrifice from 6 April 2029.

This would reduce the take-home pay of many Prospect members who contribute more than this, the indirect impact from employers passing their increased NICs on to employees would be even greater as the lower pay or pensions would affect entire workforces.

More than 1,000 Prospect members have used our online tool to lobby their MP about this issue as enabling legislation was debated in the House of Commons.

This Bill is now in the Lords, but it is still very worthwhile adding your voice to our campaign by writing to your MP about it if you have not already done so.

What is salary sacrifice for pension contributions and how does it currently work?