An increasingly popular form of remuneration in Great Britain, ‘salary sacrifices’ are however causing the government concern because they significantly affect the amounts of social contributions being paid and are thus impacting the government’s coffers.
Less salary in exchange for non-cash benefits (car, train tickets, child care hours) or for payments into a pension scheme: this is the principle underlying ‘salary sacrifices’ provisions that are increasingly being taken up by British businesses. It is a win-win for employers and employees as social contribution payments are lowered due to the fact that the employee is receiving less in cash salary terms and that the non-cash benefits are often exempt from social contributions. The only...
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