Easyjet passes on NI savings to its staff

EasyJet is introducing pension payments via salary sacrifice in time for the new tax year and is passing on half its national insurance savings to staff through their pensions.

The airline operates a group personal pension plan through Scottish Equitable into which it pays contributions of either 5% or 7% for staff, depending on their seniority. Its 4,000 employees do not have to make any contributions into the scheme.

Where staff opt to take salary sacrifice in relation to their pension contributions they will make savings on tax and national insurance contributions. In addition, EasyJet will pay half of its national insurance saving (6.4%) into the pension, on top of existing contributions. About a third of existing employees currently make a contribution into the pension scheme.

Ken Lawrie, group remuneration manager, said: "Hopefully that will increase through doing this. The firm has written to all employees individually and put up information on the intranet explaining how the scheme will work. It is also running a series of seminars at its various sites."

He added: "We have been using Lorica financial advisers. Everyone has had access to them and they have been actively coming out on base visits."

EasyJet has also introduced a home computing scheme within the last 12 months.