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Salary Sacrifice reduces the amount of cash pay, therefore it can have an effect on earnings related benefits and work-related payments, such as state second pension, statutory maternity pay and statutory sick pay. The most significant consideration for state benefits will be if cash income falls below the lower earnings limit (LEL) because the pension and benefits could be adversely affected. See http://www.hmrc.gov.uk/specialist/salary_sacrifice.pdf for more information.