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  1. When you exchange pay in return for a benefit that is exempt from National Insurance (NI) contributions you do not pay NI on the exchanged portion, only the actual earnings. As your entitlement to some benefits is based on the amount of NI contributions that you pay and others are based on the amount you earn, joining this scheme may affect your current or future entitlement to benefits including:
  • Incapacity Benefit
  • State Pension
  • Statutory Maternity Pay
  • Shared Paternity Pay
  • Statutory Sick Pay
  • Working Tax Credit
  • Child Tax Credit
  • Universal Credit
  1. For more information about how these benefits would be affected by a salary exchange arrangement, contact the relevant benefit provider.