Before completing this form, your payroll team will have run an NMW compliance check to confirm this arrangement is permissible. This document formally varies your contract of employment to reflect the salary sacrifice arrangement. Please read each clause carefully before signing.

Crown Payroll Services Ltd

Top Floor, 108 Bradshawgate
Leigh, WN7 4NP
hello@crownpayrollservices.co.uk

Notice of Variation to Contract of Employment

Salary Sacrifice Pension Arrangement — Employee Agreement

Part 1 — Employee Details

First Name *

Last Name *

Date of Birth *

National Insurance Number *

Employer / Company Name *

Job Title

Email Address *

A copy of this agreement will be sent to you at this address

Part 2 — Arrangement Terms

Current Contractual Salary £ *

Salary Sacrifice Amount £/month *

Enter monthly sacrifice amount (not annual)

Pension Provider *

Arrangement Start Date *

Type of Request *

Arrangement Summary

Employee—

Employer—

Current contractual salary—

Monthly sacrifice—

New contractual salary (post-sacrifice)—

Effective date—

Part 3 — Contractual Variation

        1. Variation to pay. With effect from the date shown in Part 2, your contractual gross salary is varied from £[current salary] per annum to £[post-sacrifice salary] per annum. This reduction represents the agreed salary sacrifice of £[sacrifice amount] per month, which will be paid directly to your pension scheme.
      

2. Nature of the variation. This is a voluntary arrangement entered into by mutual agreement. It varies the terms of your contract of employment. The variation takes effect on the date shown in Part 2 and remains in force until varied or terminated in accordance with Clause 4.

3. Effect on statutory pay and other benefits. You acknowledge that your reduced contractual salary will be used as the basis for calculating:
• Statutory Maternity Pay (SMP), Statutory Paternity Pay (SPP), Statutory Sick Pay (SSP) and other statutory payments
• Any pay-related benefits referenced in your contract of employment
• References for mortgage applications and other credit purposes
You have been made aware of these implications and confirm you accept them.

4. Right to cease or amend. This arrangement may be varied or ceased in the following circumstances:
• At any annual open enrolment window notified by Crown Payroll Services
• On a recognised life event (marriage, divorce, birth of child, death of dependant, change in working hours, change in partner's employment status)
• Where continued participation would reduce your pay below the National Minimum Wage or National Living Wage applicable to your age
• With the agreement of your employer at any time
To cease or amend the arrangement, complete the Pension Opt-Out & Salary Sacrifice Cease form on the Crown Payroll portal.

5. National Minimum Wage compliance. Crown Payroll Services has confirmed that this arrangement does not reduce your effective hourly rate below the National Minimum Wage or National Living Wage applicable to your age at the date of this agreement. If your hours, rate or the NMW rate changes, a new compliance check will be required before any amendment.

6. Tax treatment. This arrangement is made under HMRC's salary sacrifice rules. As a result, your employer's National Insurance contributions and your own National Insurance contributions will be calculated on your reduced salary, which may result in a lower NI liability for both parties. Income tax will also be based on your reduced salary. This is not tax avoidance — it is specifically provided for under ITEPA 2003.

7. Pension contributions. The employer will pay the sacrificed amount directly to your pension provider (your chosen pension provider) in addition to any employer pension contribution already payable under your contract or auto-enrolment obligations. The sacrificed amount will be treated as an employer contribution for pension purposes.

Part 4 — Employee Declaration & Digital Signature

By completing this section you are formally agreeing to a variation of your employment contract. Please read all clauses above before signing.

I confirm I have read and understood all clauses above. I agree to the variation of my contract of employment on the terms set out, including the reduction in my contractual salary and the effect on statutory pay calculations. *

I confirm this is a voluntary arrangement. I have not been pressured or induced to enter into this agreement. I am aware of my right to opt out as described in Clause 4. *

I consent to Crown Payroll Services sharing this information with my employer and pension provider for the purpose of administering this arrangement. *

Digital Signature — Type your full legal name *

Digital signature — by typing your name above you confirm your agreement to this contract variation

Timestamp will be recorded on submission

A PDF record of this agreement will be generated and sent to your email address and to Crown Payroll Services.

Contract Variation Submitted

Your salary sacrifice agreement has been received and securely recorded. Crown Payroll Services will process the change and email confirmation to you before your next payroll run.

Reference your agreement number above in any correspondence. If you have questions contact lorraine@crownpayrollservices.co.uk