Most employees will benefit to receive extra pension contributions, but a handful might choose to opt out if they are looking to borrow for a mortgage in the near future or have other outstanding needs that require a full paycheque.  Salary sacrifice can affect an employee’s entitlement to earnings related benefits such as Maternity Allowance, Additional State Pension and Life Cover. It may also affect an employee’s entitlement to contribution based benefits such as Universal Credit and State Pension. It may reduce the cash earnings on which National Insurance contributions are charged. However, an employee might be able to claim more tax credits.