Fidante Benefits Package

Salary Exchange

Salary Exchange (sometimes known as Salary Sacrifice) is not a different Pension – it is simply a more tax efficient way to pay your personal contributions towards the Fidante Workplace Pension.

By paying your future Pension contributions using Salary Exchange, the value of those contributions will remain the same - but your monthly take home pay will increase.

What is Salary Exchange and how does it work? Salary Exchange is simply a different, more tax efficient way of paying personal pension contributions. Instead of paying your contributions from net salary (the conventional method), your salary is reduced by the amount of your gross pension contribution. This amount is then paid into your pension as an additional company contribution.

This results in the following benefits:

1. You pay less National Insurance personally and consequently, your monthly take home pay increases. 2. If you are a higher rate tax-payer, you will see immediate tax relief at the full rate (no requirement to separately claim back the additional relief owed).

The higher the level of contribution you choose to make using Salary Exchange, the greater the savings become.

Why does Fidante offer Salary Exchange?

Fidante is absolutely committed to offering employees a market leading pension scheme. Salary Exchange is an efficient way of pension contributions.

How can I calculate my own contributions and tax savings?

To help, a Salary Exchange calculator is provided along with this Guide.

Can I increase the regular contribution I pay using Salary Exchange?

Yes, and as the contributions you exchange are not subject to National Insurance, the more you contribute the more you save.

Do I have to pay my Pension Contributions using Salary Exchange?

No, although if you choose not to pay your contributions using Salary Exchange, you will miss out on valuable savings (and have the responsibility to reclaim higher rate tax relief if it applies to you).

Who is eligible to make Salary Exchange contributions?

You are eligible to make Salary Exchange contributions – as long as your post-exchange salary is greater than the prevailing National Minimum Wage.

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