Salary sacrifice and pension contributions
- From: "chas" <headinabucket@xxxxxxxxxxx>
- Date: Mon, 31 Mar 2008 15:17:57 +0100
My employer offers a salary sacrifice scheme for employees in receipt of
childcare vouchers. Following the article in yesterdays Mail on Sunday - the
money section, I am interested in taking up the salary sacrifice whereby the
employee takes a voluntary pay cut, the employer would pays this pay cut
into the pension of the employee - thus both employer and employee
financially gain in terms of tax/NI contributions and the employee still
takes home the same take-home pay.
As I would be financially better off in terms of my pension contributions,
and so would my employer in terms of a cut in the amount of tax/NI they
would pay, and as they already offer salary sacrifice to one section of
staff - i.e those in receipt of childcare vouchers - how can I get my
employer to take this up?
I spoke to them today about it and am sending them the article but they
appear vague and say that in an industry with over 6000 employees this would
not be set up very quickly. With that many employees it stands to reason
that many may wish to take this up benefiting everyone except the taxman. If
my employer refuses, is their any legislation I can hit them with when
bringing a grievance? I.e Equal opportunities or something else?
Any advice greatly appreciated.
chas
.
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