Discover how salary sacrifice schemes can support staff and help businesses save vital funds in the face of rising costs
Labour’s 2024 budget has unveiled two major changes that could impact your business. First, the employer’s National Insurance (NI) contributions rate is set to rise from 13.8% to 15% in April 2025. Next, the secondary threshold (the earnings level at which employers start paying NI) will drop from £9,100 to £5,000 when contributions are due.
For businesses, these changes could mean higher costs. For staff, their wages - or wage growth - could be negatively affected as employers battle to offset rising expenses.
If you’re a leader looking to stretch your budget in light of Labour’s new plans, employee benefits could be the answer.
Finances play a huge role in workplace wellbeing, influencing everything from stress levels to job satisfaction. As the 2024 budget takes effect, it’s vital to know how these changes could affect your workforce and how to provide the right support.
One way to make a difference is through employee benefits and perks. Salary sacrifice schemes such as Home and Electronics, Cycle to Work and Car Leasing can help to give your staff financial relief and practical support, while Lifestyle Savings and Health Cash Plans can help them save on everyday expenses.
Salary sacrifice schemes could also help to reduce your staff’s NI contributions by lowering their taxable salary when securing the items they want and need.
By supporting your teams to manage their finances, you could potentially foster a healthy, engaged and present workforce while building a positive reputation as an employer who values their people.
Salary sacrifice schemes also offer a smart way for employers to offset some of the impact of increasing NI costs. By maximising savings on NI contributions, businesses can free up funds that can then be reinvested into growth or passed on to staff as incentives.
Embracing salary sacrifice schemes can turn budget challenges into opportunities, strengthening your team and building a resilient, future-focused business.
Offering great employee benefits is just one part of the puzzle. As an employer, you also need to establish a clear and strong communication strategy to ensure your people know what's available to them.
Promoting your benefits through regular updates can help to elevate engagement, increase usage, maximise ROI, and enable employees to see the value of their benefits.
When staff understand how to get the most out of your offering, you could see a boost in brand loyalty and a reduction in turnover rates – leading to a more satisfied and financially secure team.
To communicate your offering effectively, you can:
Want to learn more about how salary sacrifice benefits could support your people and your organisation in 2025? Get in touch with the team today.
Cycle to Work benefit, Home and Electronics and Car Leasing are provided via a salary sacrifice arrangement. Terms & Conditions apply.
For bicycles valued over £1000. Your organisation is a broker and not at lessor. SME HCI Ltd (trading as Vivup), 5 Margaret Rd, Romford, RM2 5SH, is authorised and regulated by the Financial Conduct Authority, (Reference 626422). UK Only, 18+, subject to status, terms apply.
Health Cash Plans – Benefits are payable according to the benefit schedule up to the maximum benefit per Insured Person in each Scheme. Exclusions may apply. Terms and Conditions apply.