How Salary Sacrifice Saves Your Business Money
When employees exchange part of their salary for non-cash benefits - such as pension contributions, workplace savings, or cycle-to-work schemes - their gross taxable salary is reduced. This means:
Lower Employer National Insurance (NI) Contributions – Since NI is calculated on salary, a lower taxable salary means reduced contributions, resulting in direct cost savings for your business.
Reduced Payroll Liabilities - Streamline your payroll expenses without reducing employee take-home value, keeping overall wage costs more efficient.
Tax-Efficient Employee Benefits - Offer valuable financial perks at no extra cost to your business while improving employee financial well-being.