Payslips now include a salary sacrifice label for employee salary sacrifice pension contributions, making them clearer and easier to understand. This update applies to both the current period contribution and the Year-to-Date (YTD) totals.
When a salary sacrifice pension is in place:
The employee payment label will now read: Pension Salary Sacrifice
The YTD label will read: Employee pension (incl. Salary Sacrifice).
The YTD label means that this is the total amount you have contributed to your pension within the tax year, including any contributions made via salary sacrifice.
Both labels will continue to indicate whether the scheme is AE or non-AE, as appropriate. This helps employees better understand the payments being made.
As a Payroll Administrator, you'll often need to explain payslip details to employees. These updated labels make it clear that pension figures may include salary sacrifice contributions, reducing confusion and the need for additional clarification.
Pension reports will continue to function as normal, with no changes to how data is calculated, exported, or sent to Pension Providers. This update only affects the labels shown on PDF payslips.
If you do not process Salary Sacrifice pensions, this label will still appear but will not affect your pension processes.
📌 Note: Pension details may appear differently depending on how the scheme was set up. You can check this when you report a salary sacrifice pension to a pension provider.
Where to find it
You'll see these updated labels on
On PDF payslips only
In the payments section, e.g., Pension Salary Sacrifice AE
In the Year-to-Date (YTD) totals section, e.g., Employee Pension AE (Incl. Salary Sacrifice)
This update provides greater transparency about what's included in the YTD pension figures, making payslip explanations more straightforward.
If employees have questions about their salary sacrifice arrangements or how these contributions affect their take-home pay, you can now refer directly to these clearly labelled YTD totals as part of your explanation.