Currently, Remote's pension scheme is set up using a collection method known as Net Pay Arrangement. This is where pension contributions are collected before tax has been applied and after National Insurance Contributions (NICs).
Salary Exchange is another way that employees & employers can contribute to an employee’s pension fund. In the UK, salary exchange is also known as salary sacrifice. With Remote, it is an arrangement where employees agree to exchange part of their salary in exchange for the employer making payments into their pension fund. There are a number of benefits that both employees and the Company can enjoy from participation in this scheme. From 1st January 2022, this scheme will become available for employees to participate in.
Starting from April 1, 2024, employees currently contributing through a net pay arrangement scheme will be automatically transitioned to a salary sacrifice scheme, unless they choose to opt into a relief at source scheme or if they are close to earning the national minimum wage.
See also: All about Salary Exchange in the UK
This change will result in both a slightly higher pension contributions and take-home pay.