Salary sacrifice schemes are offered by employers to their staff as part of a voluntary benefits programme. They help create a more flexible employee benefits package and are used by companies of all sizes to help drive better employee engagement. A key part of a strategy for retention, salary sacrifice schemes can benefit both employers and employees. By offering a wide variety of additional employee benefits companies can enhance their employer brand and further engage existing employees.
What are Salary Sacrifice Schemes?
Salary sacrifice schemes work by reducing an employee’s salary in exchange for a benefit. Many of these schemes are government backed like Childcare Vouchers and Cycle to Work schemes, others can be provided to your employees as optional remuneration. Salary sacrifice schemes allow employees to exchange part of their pay, which is taken directly from payroll, for a wide range of benefits, services or home technology products.
Cycle to Work
Thanks to salary sacrifice schemes, there’s never been a better reason for your employees to ditch the car and use pedal power to get to work. Cycling to work is an easy and cost-effective way that has a real positive effect on your employees. It saves them money and keeps them fit all through active travel. To get yours up and running we offer both the Evans Cycles and Halfords Cycle2Work scheme.
Childcare Voucher Scheme
Our Childcare Voucher Scheme can help save parents up to £933 a year (for basic rate tax payers). Employees can choose their own childcare provider or nursery as long as these are state registered or Ofsted approved. Employees who currently receive childcare vouchers can be easily transferred to the scheme, but this is not available to new employees as of October 2018.
Car Salary Sacrifice
Cars with ultra low emissions will be unaffected by the changes to car salary sacrifice announced in the 2016 autumn statement. Our car salary sacrifice scheme allows employers to provide their employees access to a brand new fully maintained and insured car at a lower cost than they could normally achieve in the retail market.
Home Technology Salary Sacrifice
Salary Sacrifice schemes for home technology will play a significant role in closing the UK’s digital skills gap, which is costing an estimated £63 billion per year in lost GDP. Our research shows that 70% of employees who participated in a home technology salary sacrifice scheme believe the scheme has helped them and their family to improve their IT skills and knowledge. By offering home technology salary sacrifice schemes to employees you are helping to improve the IT literacy of employees and their families, as well as investing in the digital future of the country.
Your Holiday Trading scheme can allow employees to purchase extra annual leave by sacrificing part of their salary in return. This is provided through salary sacrifice, deducting the equivalent amount from an employees gross salary, providing the employer a saving on employers national insurance and saving the employee both tax and national insurance.
Want to know more?
We’ll help you find the benefits and services that fit your business, create your Hapi app, launch the programme face to face with your employees and create a tailored ongoing adoption programme.Get in touch