Does your employer offer salary sacrifice?

NedS

Just wondering what percentage of people have the option of salary sacrifice for their pension. Also, if you are replying, please can you give an indication as to how mush it's worth to you in terms of NI savings?

Marcon

NedS said:

Just wondering what percentage of people have the option of salary sacrifice for their pension. Also, if you are replying, please can you give an indication as to how mush it's worth to you in terms of NI savings?

Might make sense to include a third option: don't know.

Perhaps also exclude those on minimum wage, because any salary sacrifice will take them below minimum wage?

El_Torro

My last couple of employers (including my current one) offer salary sacrifice. Which is nice.

I've never had an employer who passes on any NI saving to me. Which I guess is less nice.

cloud_dog

Because of the amount I sacrifice my NI savings works out just under 7% overall.

Crudecheese

Hi. Yes I pay in via Sal sac...it varies but up to 40% of my salary sometimes. Company share their ni saving with us so really worth doing.

CSL0183

Recent reports suggest around 75-85% of medium to large private employers offer salary sacrifice. 

There are tax advantages for the employer and one would argue that if your employer is not offering it then they are tax inefficient and they should sack their CFO’s. 

For smaller employers it may be a bit more difficult to do but again that’s no excuse as again it’s about tax efficiency. Employers effectively save the 13.8% NI element on that portion the employee gives up. 

techno12

Today my company announced that everyone is going onto salary sacrifice (a smart scheme where there's more take home pay and more going into the pension as they give 100% of their NI saving).

I was already sacrificing a large % anyway so it doesn't apply to me, but most people seem happy as it's a win-win with more money in pocket and more in the pension.

Thinking about it, as they pay the statutory minimum 3% employer contribution they probably won't raise it, as this auto-sal-sac gives the impression that they are giving us more so there'll be less clamour for them to increase it.

JoeCrystal

No opinion for salary sacrifice at m employer unfortunately despite massive savings available. Very annoying. But then, this is the company who considered legal minimum pension contribution as a "generous benefit"...

JustAnotherSaver

When learning about SS on this forum and seeing very little 'wrong' with it, I put it to my employer. It sounded like a total win-win for us both.

My employer flat out refused it and told me to look in to it further as to why.

I did and couldn't find anything negative. They'd be better off as would I. I was stumped so went back to them and asked them to explain.

They said for a start, they would have to pay people who were off on the sick. This was "just one of" the reasons they weren't going to do it.

Heisenberg01

I'm on SS but no idea if the company pass on the NI savings, how would I know?

MallyGirl

Heisenberg01 said:

I'm on SS but no idea if the company pass on the NI savings, how would I know?

They would probably tell you. My employer doesn't, my husband's does and makes quite a big thing about it.