Employer savings on salary sacrifice (passing on to employee)

Zerforax

My understanding is that generally, employers contribute 13.8% to National Insurance and can therefore generate up to 13.8% savings on any funds processed via salary sacrifice for employees.

How common is it for employers to pass on that savings to employees? 

I previously asked my employer and they said they do not do it. However as I'm planning to increase the amount by way of salary sacrifice, it's to the point where the savings is quite substantial (from my perspective, not the employer).

eastcorkram

I asked my employer too. Simply said they don't do it. 

Zerforax

eastcorkram said:

I asked my employer too. Simply said they don't do it. 

Haha true I am expecting another "computer says no" response. I'm tempted to say, you can either increase my salary to £X or find another way to pass on the savings to me. Their net position would be the same if I wasn't using the salary sacrifice.

400ixl

Most from what I have seen don't. Some do though.

You also have no right to it through extra employer contributions or by a salary increase. You can insist all you like but there is no obligation on them.

You have the option to find another employer though.

Zerforax

400ixl said:

Most from what I have seen don't. Some do though.

You also have no right to it through extra employer contributions or by a salary increase. You can insist all you like but there is no obligation on them.

You have the option to find another employer though.

Haha probably not worth throwing my toys out of the pram over. I guess on the employer side it is probably a lot of faff to set up and then they would have to monitor and adjust etc. Helpful to know its uncommon though!

Albermarle

Zerforax said:

400ixl said:

Most from what I have seen don't. Some do though.

You also have no right to it through extra employer contributions or by a salary increase. You can insist all you like but there is no obligation on them.

You have the option to find another employer though.

Haha probably not worth throwing my toys out of the pram over. I guess on the employer side it is probably a lot of faff to set up and then they would have to monitor and adjust etc. Helpful to know its uncommon though!

I think it is more they just like to keep the savings, rather than give them to the employee.

NoMore

Your still saving on your own NI contributions, would you perhaps be happy to give some of that saving to your employer ?

NedS

Albermarle said:

Zerforax said:

400ixl said:

Most from what I have seen don't. Some do though.

You also have no right to it through extra employer contributions or by a salary increase. You can insist all you like but there is no obligation on them.

You have the option to find another employer though.

Haha probably not worth throwing my toys out of the pram over. I guess on the employer side it is probably a lot of faff to set up and then they would have to monitor and adjust etc. Helpful to know its uncommon though!

I think it is more they just like to keep the savings, rather than give them to the employee.

My view is that they are already giving the employee a saving (of NI) which they do not have to do. Where is their incentive to do something which they do not have to do? It's the saving in NI that they can make.

Be grateful you can SS in the first place - it's a tax avoidance loophole that should be closed IMHO (says he whose employer does not offer SS and has to pay a few thousand in NI every year)

Dazed_and_C0nfused

NoMore said:

Your still saving on your own NI contributions, would you perhaps be happy to give some of that saving to your employer ?

Of course, think it was 12% when set up, I'll donate anything above 8% 🤣🤣🤣

theblueflash

It’s not the hill I’d choose to die on - it’s also not the hill I’d choose to meet my demise, were I in Government shoes. It’s minuscule versus other bigger fish to fry.  I believe there’s some benefit to front-loading pension conts. in a financial year - sure someone worked it out here at some point. 

El_Torro

I have had a salary sacrifice pension from my last couple of employers (including the current one) and I've never been given any benefit from the employer's saving. It doesn't bother me too much, as mentioned it's great that my employer has bothered to set up a salary sacrifice system at all. There are some people who have posted on this forum who say they do get at least some of the saving passed on to them, not something I've heard of outside of this forum though. 

I also get an annual bonus. When I started working at this employer they didn't allow any of the bonus to be salary sacrificed. That changed a few years ago though, now they let us say what percentage of the annual bonus should be sacrificed into the pension (if you say nothing the default position is 0%). The fun part is that we have to say the percentage before we know what our bonus will be. Nice bit of guesswork.