The Autumn Budget delivered a series of important updates affecting employers, internationally mobile employees, and fast-growing companies. The measures announced span pensions, international tax reliefs, and employee share incentives, each with practical implications for how organisations reward, support and manage their people.
Salary Sacrifice and Pension Contributions
The Budget introduced a significant shift in how pension contributions made under salary sacrifice arrangements will be treated for National Insurance purposes from April 2029.
Under the new rules, pension contributions made under salary sacrifice will be subject to both employer and employee NICs on any amount above £2,000 per year. While other employer contributions remain NIC-free, this will require employers to re-evaluate their reward strategy, financial modelling and communications to employees.
For a full breakdown of the changes, key dates and next steps for employers, read our detailed insight here.
Enterprise Management Incentives (EMI): Expanded Eligibility and Longer Lifespans
One of the most notable employment-related reforms relates to Enterprise Management Incentive (EMI) options.
From April 2026, larger and scaling companies will gain increased access to EMI schemes, as key thresholds rise.
These changes will allow more companies to participate in EMI and give existing participants greater flexibility, particularly those operating exit-based share option structures.
For a full overview of the updates and what they mean for employers, access our insight here.
Overseas Workday Relief (OWR): New Caps and PAYE Alignment
The Budget also introduced reforms to Overseas Workday Relief, a long-standing provision supporting internationally mobile employees who are newly resident in the UK.
From April 2026, OWR will be capped at the lower of:
- £300,000, or
- 30% of total employment income for the tax year
In addition, PAYE processes must now be aligned with these limits, meaning employers will need to ensure any S690 applications and payroll adjustments reflect the statutory cap.
For a clear and practical explanation of how these changes apply, and to understand transitional rules, read our guidance here.
For practical next steps and detailed analysis of how these changes may affect your organisation, you can explore all three articles in our Budget Insights collection above.
If you would like expert support applying these updates to your workforce or reward structures, our integrated tax, legal and HR specialists are here to help.
