Salary Sacrifice Policy

Clarify how salary sacrifice schemes operate in your business

A clear policy helps employees understand how salary sacrifice arrangements work and what they mean for their pay and benefits. Set out how employees can opt in, any limitations, and how changes are managed. This ensures transparency while helping you administer schemes consistently and accurately.

It's important to note that salary sacrifice arrangements require a formal change to the employee's contract, and both employee and employer must agree to it.

It is crucial that the arrangement does not reduce an employee's pay below the National Minimum Wage or National Living Wage. With a formal policy in place not only can you keep a detailed written copy of the arrangement but you comply with such legal requirements.