Salary sacrifice (Salary exchange)


'Salary Exchange' is a way of lowering the cost of your National Insurance Contributions. Under Salary Exchange, Telefónica makes contributions to your Pension on your behalf, and your salary is reduced by a corresponding amount. This means you don’t pay National Insurance on the amount that is contributed to your Pension.


Saving with salary exchange

How much you save depends on your earnings and which section of the Telefónica UK Pension Plan you belong to. Here’s an illustration of what you can save under salary exchange.


Salary % of salary saved
£0 - £8,632 Nil
£8,632 - £50,000 12%
£50,000 and above 2%


These savings mount up over time, which is why salary exchange has become very popular.


Our default option is to enrol all members under salary sacrifice. To check your Pension statement and to view your options please visit Telefónica Rewards.


If you don't wish to use salary exchange you can opt-out by changing your preferences on Telefónica Rewards.