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Around 3.3 million pension savers are set to lose out after major changes to salary sacrifice schemes announced last Wednesday at the Budget . Guidance published online by HMRC about the changes said an estimated 7.7 million employees currently use salary sacrifice to make pension contributions.

Of these, 3.3 million sacrifice more than £2,000 of salary or bonuses. Changes announced in the Budget will mean salary-sacrificed pension contributions above an annual £2,000 threshold will no longer be exempt from national insurance (NI) from April 2029.

Contributions above £2,000 will be treated as ordinary employee pension contributions in the tax system and subject to NI contributions. Employers may offer salary sacrifice as part of their pension scheme as a tax-efficient

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