Offering salary sacrifice schemes to employees can reduce tax liability and National Insurance costs for employers, explains Suzanne Gallagher, head of UK payroll, Employment Hero
With rising interest rates and energy costs, many employers who wanted to provide their hard-working and exceptional staff with cash bonuses simply could not do it at the end of the year.
Luckily there are other perks that will cost your company very little other than time, but could be exceptionally useful in retaining staff and showing them you value them. Enter salary sacrifice.
What is salary sacrifice?
The branding is terrible. Salary sacrifice sounds an awful lot like reducing an employee’s pay for some noble cause, which is nobody’s idea of a fun perk. Technically, it does involve reducing pay – but counterintuitively it is about saving employees money.
Salary sacrifice allows a company to take some money out of a consenting employee’s salary and spend it on some type of perk. This could be a huge range of perks – car leases, gym membership, pension contributions.
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