In the current economic climate, many employers are increasingly focussing on ways to reduce costs and maximise value to employees from their current benefit arrangements. Introducing salary sacrifice is the win-win solution in achieving these goals. By structuring your employees' pension contributions you can typically save around 0.5% of pensionable payroll while also increasing employees' take home pay. Find out how much your organisation could save by using the calculator on the right.
Under salary sacrifice, pension members' contributions are restructured as an employer contributuion which has the effect of lowering the gross salary and consequently the total amount of National Insurance (NI) due. This allows your company and your scheme members to make substantial savings in NI contributions. As well as pension contributions, a range of other benefits can also be introduced under salary sacrifice such as child care, bikes, bus transport and so on, further increasing the tax and NI savings available to you and your employees.
We offer our clients a complete service to design, implement and communicate pension salary sacrifice to ensure a successful result.
OUR SERVICES
- Data collection and modelling e.g. identifying savings and any employees adversely affected
- Review of HR documentation and pension scheme rules to identify updates
- Design approach to salary sacrifice, draft rules and support implementation
- Communication, including stakeholder managment, generic member material, personalised statements, online modellers and member presentations
- HMRC liaison to obtain approval
- Project management