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Salary sacrificing for employees

You may not be able to offer your staff pay rises in the league of bigger companies, but services such as salary sacrificing could assist employees looking for ways to save.

Salary sacrificing is a value offering where employees use their gross income for a purchase, additional superannuation contribution or loan. The employer takes repayments from the employee’s pre-tax income so the employee essentially pays less tax. This may work out to offer a greater after-tax salary, or a discount on the cost of an item or loan.

Salary sacrificing takes a little payroll planning but for a system that technically costs employers nothing, it gives employees substantial benefits.