Salary Sacrifice
Save money and increase financial wellbeing for your workforce
reduce your employer costs
Boost pension contributions
increase take home pay
What is salary sacrifice?
As an employer, you already help your employees and yourself by paying into a pension, you're already taking the right steps to save for the future. Your pension savings are invested to help them grow. Another way to make your money work harder could be to take advantage of salary sacrifice, also know as salary exchange.
introducing salary sacrifice
Salary sacrifice is an agreement between you as the employer, and your employees.
​
Your employees agree to exchange part of their salary or bonus for a pension contribution
​
You can either choose to implement at contract level, or on an individual basis.
benefits for employers
As an employer, you pay Employers National Insurance as a percentage of your employees salary.
By employees exchanging part of a salary of bonus, employers pay less Employers National Insurance.
benefits for your employees
When your employees exchange part of their salary or bonus for a pension contribution, they will benefit from savings in Tax and National Insurance also.
​
Employees can choose to use these savings in two ways:
​
(i) To increase their pension contributions and keep their take home pay the same, or
​
(ii) Increase their take home pay and keep pension contributions the same.
- 01
- 02
- 03
- 04
- 05