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Salary-Sacrificed Pension Contributions Exempt from NI Starting 2029

12/4/2025

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Summary

Story summary

Starting April 2029, salary-sacrificed pension contributions will be exempt from national insurance up to £2,000 annually.
Contributions above the £2,000 cap will incur additional national insurance charges, affecting about 7.7 million workers.
Experts advise maximizing contributions before the cap takes effect.
Treasury says the changes primarily affect higher earners, with 74% of basic rate taxpayers remaining unaffected.

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Story summary

Starting April 2029, salary-sacrificed pension contributions will be exempt from national insurance up to £2,000 annually.
Contributions above the £2,000 cap will incur additional national insurance charges, affecting about 7.7 million workers.
Experts advise maximizing contributions before the cap takes effect.
Treasury says the changes primarily affect higher earners, with 74% of basic rate taxpayers remaining unaffected.