Employee-funded benefits made simple
Salary sacrifice: Helping people stretch their salary further, improving access to the things they need – and want.
What you get
Extra support for employees
When you’re offering employee benefits, there are two ways to fund them. Employer-funded benefits are those that you pay for and give to your employees for free, while employee-funded benefits are ones that people choose to pay for themselves.
Employers can still give a little extra support to those paying for benefits, though. Salary sacrifice and net pay deduct benefits improve your employees’ ability to afford both everyday essentials and luxuries by contributing funds directly from their payslips.
What’s the difference between salary sacrifice and net pay deduct?
The principle of the two systems is pretty much the same – employees agree to take a portion of their pay, and contribute it directly towards a benefit. But there are some key differences too.
Salary sacrifice sees your employees swap a portion of their salary for a non-cash benefit like childcare vouchers, or their pension. Depending on the benefit, salary is sacrificed before tax and NI is deducted, saving both of you some money every month.
Net pay deduct, on the other hand, takes something that seems unattainable to your employees if they were to buy it out of their salary, and helps them spread that cost over a fixed term by making a deduction from their net pay every month. Rather than having to save up or take out expensive credit, there’s a handy, affordable option supported by you, their lovely employer.
Both of them can really help your employees to save quite a substantial amount of money over the course of a year, and it’s a fantastic method of boosting engagement, and creating a great workplace culture where your employees feel supported – like they really are getting more out of working for you.
What can you provide?
Apart from buying a house, cars are the biggest financial investments most of your employees will ever make – so they're an incredibly popular option for salary sacrifice. Choosing ultra-low emission cars also provides extra tax and NI savings for you and your employees.Find out more
Cycling to work can do great things for employee health, but the right gear can be pricy. Help your employees get on their bikes by bringing in a cycle-to-work scheme that can see them save up to a third of the cost of a bike and safety equipment through tax and NI savings – and rest assured that we take care of all of the end-of-hire arrangements to make sure your staff stay in the saddle.Find out more
More than ever before, people are seeking education outside of their job role to help further their career. So why not help them access it? Spreading the cost of courses over a year or two through net pay deduct could see your employees unlock potential they never knew they had, bringing it back to your organisation.
The newest tablet, smartwatch, smartphone, laptop, or whatever's next on the tech horizon. It's always going to be a popular option – people can't get enough of tech, and the prospect of an affordable monthly payment for the latest gear through a net pay deduction will be very appealing indeed.Find out more
Parking can be a major monthly expense, so help your staff save a little bit every month. Annual season tickets offer a lower average price-per-month than twelve monthly tickets, but the upfront cost can be off limits to some – but not anymore! Net pay deductions can help everyone get the best price.
Let your employees spread the cost of healthcare by paying for health screenings and plans through net pay deductions. This can hugely improve access to private health care – something that's out of reach to many without a little help.Find out more
The sky's the limit…
We've just looked at some of the most popular options for salary sacrifice and net pay deduct arrangements, but the sky really is the limit. We're always looking for the next big thing, and we're always excited to hear about what your employees might be looking for.
Everything in one place
Our entire portfolio of employee benefit services are accessed through one online platform. Whether you want the full package, or just one specific service, it's all delivered through the same easy-to-use portal.
High Street Discounts
Annual Leave Purchase
Why choose salary sacrifice and net pay deduct schemes?
Salary sacrifice and net pay deductions have a huge range of benefits for businesses and their employees alike.
Giving your employees the option to spread the cost of the big things, like cars, laptops and season tickets, greatly improves their ability to access these things. We can also often give you bulk and corporate discounts that you and your employees would be unable to find on your own.
Salary sacrifice arrangements also allow you and your employees to save money. As salaries are reduced, so too are tax and national insurance contributions! There are a number of rules and regulations around this, but our schemes are long standing and tried and tested – please get in touch if you have any questions.
Giving your employees a little extra, helping their salaries stretch further, is a fantastic method of showing that you care about their wellbeing, their wallets, and their careers with you. Net pay deduction and salary sacrifice arrangements are a serious investment spread over many months, or even years, so providing access is a clear message that you plan to keep someone around.
Find out more about salary sacrifice and net pay deduct
Take a look at our success stories and the articles in our Engage Hub to see employee-funded benefits in action, or to learn more about how and why they work.
The Generation Game – winning employee hearts and minds in a dynamic multi-generational workplace
Giving Suffolk County Council's staff more - wherever they work - with cost-effective benefits
Stocking a treasure chest full of benefits for The Entertainer's employees
Are Your Staff Just Surviving On the Living Wage?
How To Attract and Retain Young Talent Using Financial Wellbeing Benefits
Are You up to Speed With Generation Z?
What's new in salary sacrifice?