Penfold, the digital pension provider, has launched a comprehensive guide to help employers and advisers understand how salary sacrifice pension contributions can reduce the impact of the recent increase in National Insurance Contributions (NICs).
The guide comes in response to a sharp rise in inbound enquiries from employers since the Chancellor’s Budget announcement confirmed increases to employer NICs. With widespread concern about the rising costs of employing staff, businesses across multiple sectors have been seeking practical advice on how to mitigate these new expenses.
“Since the Budget, we’ve seen an unprecedented level of inbound interest from employers who are now facing much higher employment costs. Salary sacrifice pensions have gone from being a ‘nice-to-have’ to a strategic priority,” said Chris Eastwood, Founder and CEO, Penfold.
Employer Interest Hits Record Highs
Penfold’s latest data highlights the scale of this shift:
· Employer enquiries surged by 175% year-on-year (Q1 2025 vs Q1 2024).
· Interest in switching to Penfold’s salary sacrifice pension solution jumped by 800% year-on-year, with a 688% increase since the last quarter.
· Contributions via salary sacrifice grew by 160% year-on-year and 53% quarter-on-quarter, marking the sharpest quarterly growth since early 2022.
“We’ve onboarded more employers using salary sacrifice in Q1 2025 than in the whole of 2023 combined. This isn’t just curiosity – businesses are taking decisive action to protect their bottom line,” added Eastwood.
The Guide: Practical Advice, Real-World Examples
The new Penfold guide is designed to cut through the confusion, offering clear, actionable insights for employers and advisers. It combines:
· Market statistics
· Case studies from businesses already benefiting from salary sacrifice
· Simple explanations of how salary sacrifice works in practice
The goal is to provide a flagship resource that demystifies salary sacrifice pensions, helping businesses make informed decisions at a time of financial pressure.
Salary Sacrifice trends
The sharp increase in enquiries to Penfold echoes broader changes in the market. According to the CIPD 85% of very large employers and 61% of large companies now offer salary sacrifice pensions and 41% of SMEs are offering the scheme – figures that are expected to rise as more businesses look for ways to manage employment costs.
Eastwood concludes, “With National Insurance increases now a reality, businesses of all sizes are recognising the value of salary sacrifice. Our guide gives them the clarity they’ve been asking for,”.
Download the Guide
Employers and advisers can access Penfold’s new salary sacrifice guide here.
