Salary sacrifice allows staff to save national insurance contributions and tax on their pension contributions as it comes from gross salary as opposed to net pay.
The initiative, branded as My Pension in E.on's flexible benefits scheme has seen 670 employees sign up since its launch last month.
Ant Donaldson, senior employee benefits specialist at E.on, said: "Year-on-year we are seeing an increase in take-up of flexible benefits among staff. Our latest addition, pension salary sacrifice, is another way we can give something back and help employees save money.
"Pensions are so important for all our staff, with about 12,000 colleagues already a member, and we hope this new arrangement will encourage more people to sign up to the scheme."
E.on launches salary sacrifice pension arrangement
E.on, the energy provider, has launched a salary sacrifice arrangement for its defined contribution pension scheme and successfully transferred 96% of eligible staff into the option.
