Salary Increase Instead of Pension Contributions – Can an Employer do This?

Posted in : First Tuesday Q&A NI on 1 November 2022
Chris Fullerton
Arthur Cox NI
Issues covered: Pensions; Pay and Conditions of Employment

Can an employer increase salary instead of making pension contributions - where the employee requests that they do so?

The risk that is run in this situation is whether a salary increase as a result of withdrawal from a pension scheme would be considered inducement under section 54 of the Pensions (No. 2) Act (Northern Ireland) 2008. This states that an employer cannot act with the sole purpose of influencing an employee to give up membership of a pension scheme.

It is the employer’s motivation that is relevant in determining a breach of section 54, for example, if an employee came with the request with no prior communication from their employer, there would be difficulty showing that they

Already a subscriber?

Click here to login and access the full article.

Don't miss out, register today!

Are you fully aware of the benefits of Legal-Island's Employment Law Update Service? We help hundreds of people like you understand how the latest changes in employment law impact on your business.

Help understand the ramifications of each important case from NI, GB and Europe

24/7 access to all the content in the Legal Island Vault for research case law and HR issues

Ensure your organisation’s policies and procedures are fully compliant with NI law

Receive free preliminary advice on workplace issues from the employment team at Worthingtons Solicitors

Already a subscriber, now or Register

Back to Q&A's This article is correct at 01/11/2022

The information in this article is provided as part of Legal-Island's Employment Law Hub. We regret we are not able to respond to requests for specific legal or HR queries and recommend that professional advice is obtained before relying on information supplied anywhere within this article.

Chris Fullerton
Arthur Cox NI

The main content of this article was provided by Chris Fullerton. Contact telephone number is 028 9023 0007 or email

View all articles by Chris Fullerton