Salary sacrifice pension modeling

[vahid-ahmadi]

• Link to the policyengine-uk-data variable: link
• Link to the reform: link

[PavelMakarchuk]

Mostly questions

[PavelMakarchuk]

Does the UK have a separate contributed structure for structural reform?
As far as I can see this is not part of the computation tree, are we looking to estimate change in housheold income?

Or should this be purely standalone?

[vahid-ahmadi]

These variables are now integrated into the computation tree - salary_sacrifice_pension_ni_employee is added to national_insurance and salary_sacrifice_pension_ni_employer is added to total_national_insurance. This ensures they affect household net income and government balance calculations when the reform is active (cap set to finite value).

[PavelMakarchuk]

Just a nit but this is more a floor than a cap right?

[vahid-ahmadi]

You're right that it's technically a floor for the exempt amount. However, the policy literature (FT article) refers to it as a "cap on the salary sacrifice exemption," so we've followed that convention for consistency.