In these difficult times, where money is limited, it can be hard for many companies to provide a decent level of benefits to their employees.
Here’s an example of a recent new client of ours who were referred to us. They wanted to provide more benefits but were not sure how they could afford it.
The company had 50 employees and had group personal pension scheme and a small PMI scheme with only partial take up. They were keen to offer more to their employees, however, did not have the budget to achieve this.
Upon reviewing their current benefits, we suggested that they offer the employees the option to contribute to the pension via ‘salary sacrifice’. As well as being tax efficient for the employees, the exercise would save Employer’s National Insurance (13.8%) on the amount contributed by the employees.
We launched ‘salary sacrifice’ via Teams meetings and phone calls with the employees. This went down well with the employees, and many of them chose to increase their contributions too. With the NI savings this generated for the company, our client was able to start a Group Life scheme, a Health Cash plan and add more people to the PMI scheme!
If you have plans to improve your employee benefits, but don’t currently have the budget to do so, please get in touch with us and we will do everything we can to help.