What potential consequence must an employee check regarding State Pension entitlement if making a very substantial salary sacrifice?
Answer
If NICs contributions drop below the Lower Earnings Limit (LEL), they might not receive a notional credit.
If the reduction in NICs contributions due to salary sacrifice causes the earnings to fall below the Lower Earnings Limit (LEL) for that tax year, the employee might fail to receive a notional credit towards their State Pension.
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