We have an employee who has asked if they can ‘sacrifice’ part of their salary to be paid into a pension fund of their choosing (the amount he wishes to sacrifice will not take him below the NMW).

I am aware of the rules regarding salary sacrifices; contractual change, open to all other employees etc, however this is the first request we have had regarding paying into a personal pension plan.

My question is can we do it and allow the employee the benefit of the reduced tax and National Insurance through a salary sacrifice? and is it that simple or should there be other things to consider.

Many thanks
Alex Grundy