Enhance your organisation’s and employees’ financial wellbeing.

Salary sacrifice (or salary exchange) is when an employee agrees to give up the right to a share of their pay. In return, their employer provides them with an additional employee benefit.

This arrangement can make workplace pension schemes far more cost-effective. It’s a fantastic way for employers to save money and for employees to boost their pension funds – at no extra cost.

Our Workplace Pension Consultants can design a salary sacrifice scheme for your workplace pension that is auto enrolment compliant and manage the technical and legal requirements, so that you and your employees can benefit together.

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Applies to Creative Workplace Pension
Applies to Creative Auto Enrolment Pension
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What are the benefits of salary sacrifice?

Using salary sacrifice to help employees pay their pension contributions is a win-win situation.

Employers can

  • pay less in National Insurance contributions;
  • reduce the overall cost of their workplace pension contributions;
  • use savings as an extra incentive to employees, boosting their contributions even further.

Employees can

  • pay less tax and National Insurance contributions – this makes their pension contributions far more effective;
  • automatically receive the full benefit of their contributions, if they’re higher rate taxpayers – that means they don’t have to complete a Self Assessment tax return each year to get tax relief on their pension contributions.
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What else should be considered?

When introducing a salary sacrifice scheme, there are several issues employers need to think about, so there are no unexpected effects on pay and benefits.
For example:

  • by reducing an employee’s gross salary, the rate at which overtime is paid or bonuses are calculated may be affected;
  • Death in Service (Group Life Insurance) or Sick Pay (Group Income Protection) benefits are based on lower earnings than they would otherwise have been.

An experienced Consultant can help you find solutions to these issues, so they don’t cause problems day-to-day or stop you and your employees from making your money go further.

Let Creative help you harness salary sacrifice to everyone’s benefit

Creative offers you the end-to-end expertise to manage your workplace pension effectively and simply.

We can help you harness the benefits of salary sacrifice, reducing your costs and giving your employees a welcome boost to their savings at no extra cost to them.

We have the know-how to give you the benefits as efficiently as possible.

Salary exchange needn’t be a sacrifice, so let’s make your money go further.

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Important Information about Salary Sacrifice Schemes: Because a salary exchange agreement reduces salary, it can have an impact on some state benefits or state credits. For example, Statutory Sick Pay and Statutory Maternity Pay may be reduced while Child Tax Credits may be increased.

If anyone is considering starting a salary exchange agreement, they should take into account the impact on such benefits and credits.

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Made me realise how important it is to get things arranged.

Employee and Pension Scheme Member
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I realised the necessity of sorting my pension out and decoding how I am going to do this.

Employee and Pension Scheme Member
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Really informative.

Employee and Pension Scheme Member
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It made me feel more aware of what I am doing rather than just relying on someone doing it for me.

Employee and Pension Scheme Member
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Presentation was very thorough and outlined all the options available.

Employee and Pension Scheme Member
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I didn't really fully understand pensions and how they worked prior to this and now I feel assured and confident to make a decision to save for my future.

Employee and Pension Scheme Member
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Extremely useful presentation. The Creative representative explained the scheme in terms understandable by everyone.

Employee and Pension Scheme Member
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It has helped me to feel in control of my pension.

Employee and Pension Scheme Member
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It helped explain our options very simply so much easier to understand rather than the usual jargon.

Employee and Pension Scheme Member