What is Salary Sacrificing ?

When an employee agrees to forgo part of their future salary in return for benefits or other perks, it's known as a salary sacrifice. The most common examples of salary sacrifice are pension contributions and healthcare plans, but it can also include things like childcare vouchers and mobile phone contracts.

From the employer's perspective, salary sacrifice arrangements can be attractive because they can help to reduce staff costs and National Insurance contributions. For employees, the main advantage is that sacrificing part of your salary can result in a tax saving.

However, there are some downsides to consider before entering into a salary sacrifice arrangement. For example, you may lose out on certain employment rights, and if you leave your job before the end of the agreed period, you may have to repay some of the sacrificed salary.

If you're thinking of entering into a salary sacrifice arrangement, it's important to get professional advice to make sure that it's right for you.