Tax and payroll
Salary sacrifice
Giving up part of your salary in exchange for a non-cash benefit, such as extra pension contributions, an electric car or a bike, usually saving income tax and National Insurance.
A plain-English explanation, not financial or tax advice. Rules and rates change, so check your own situation. For free, impartial guidance, try MoneyHelper. Disclaimer.
You'll hear it as
I put 5 per cent into my pension through salary sacrifice.
Why it matters to you.
It can be very tax-efficient, but a lower salary can affect things such as mortgage applications. Check before you sign up.
Related terms.
Videos.
No video mentions Salary sacrifice by name yet. These are on the same topic, Careers & hiring.