WORKERS with more than one job will be able to dodge new pension contribution rules thanks to a key loophole.
In the Budget, the Chancellor announced a £2,000 cap on the amount that workers can pay into their pension every year without paying National Insurance.
The new rules are set to come into force in April 2029.
But Lord Livermore, the financial secretary to the Treasury, confirmed last week that the limit would apply to every job, not every worker.
He said: “To be clear, each employment will be treated separately for the purposes of the contributions limit for National Insurance contributions.
“Any individual who has more than one employment and who sacrifices salary in more than one of those jobs will be able to do so independently in each case.”
This new loophole means that workers with more than one job can double their allowance.
Salary sacrifice is a key scheme that allows workers to hand over a portion of their pay in return for tax-free perks.
Any pension contributions made in this way are not subject to income tax and are not liable for National Insurance, which is charged at 8% on earnings below £50,270 and 2% on income above this.
Meanwhile, employers pay 15% National Insurance.
Currently 7.7 million workers use salary sacrifice, according to HM Revenue and Customs.
It estimates that around 4.3 million of this group will be “fully protected” from the changes as they save less than the £2,000 threshold into their pensions each year.
But the Office for Budget Responsibility last month warned that these workers could still be affected if their employer passes on higher costs through lower wages or axes it altogether.
