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Salary sacrifice policy template

£ 20

Our salary sacrifice policy template outlines the guidelines and procedures for employees opting into salary sacrifice schemes, promoting transparency and compliance with relevant regulations.

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How long to understand and prepare this policy?
5 mins
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salary sacrifice policy template

What is a Salary sacrifice policy?

The purpose of this Salary sacrifice policy template is to provide you with a flexible and customisable document to serve as a robust and effective starting point for you.

By using our Salary sacrifice policy template, you can streamline your process, maintain consistency and accuracy, and save time, and it can be easily adapted to fit your specific scenario.

Best practice timescale for this to be issued
When should this policy be issued?
During onboarding / after changes / planned refresher
Issued by who, to whom
Who should issue this policy, and to whom?
Internally issued to appropriate recipients in your Company
Applicable legal jurisdictions
In which jurisdictions can this policy be used?
Great Britain & NI (United Kingdom), Worldwide

Salary sacrifice

Overview

This Salary Sacrifice Policy outlines the terms and conditions governing the salary sacrifice programs offered by [Company] in accordance with UK regulations. The policy aims to provide eligible employees with the opportunity to allocate a portion of their pre-tax salary towards selected benefits, potentially reducing their taxable income and enhancing their overall remuneration package.

Scope

This policy applies to all employees who are eligible to participate in salary sacrifice programs. The policy covers various aspects of salary sacrifice arrangements, including benefits, eligibility, procedures, and compliance, specifically tailored to the UK context.

General Principles

Eligible Benefits

Eligible benefits for salary sacrifice programs may include, but are not limited to:

  • Pension scheme contributions
  • Cycle-to-work schemes
  • Childcare vouchers or Tax-Free Childcare
  • Additional annual leave purchase
  • Health-related benefits, such as health insurance premiums
  • Other benefits as approved by the Company and compliant with UK regulations

Eligibility

Employees who have completed [X months/years] of service with the Company are eligible to participate in salary sacrifice programs. Participation is subject to the terms and conditions outlined in this policy and in accordance with UK law.

Application Process

Employees interested in participating in a salary sacrifice program must complete the Salary Sacrifice Agreement Form provided by the Company. This form should include details such as the chosen benefit, the amount to be sacrificed, and the duration of the arrangement. The Company will ensure that arrangements comply with UK HM Revenue & Customs guidelines.

Tax Implications

Employees should be aware that salary sacrifice arrangements may have tax and National Insurance contributions implications. The Company strongly recommends that employees seek independent financial advice to understand the potential impact on their personal financial situation.

Changes and Cancellations

Employees may request changes or cancellations to their salary sacrifice arrangements by completing the Termination or Changes Form. Any changes will be processed in line with UK regulations.

Communication

The Company will provide employees with comprehensive information about available salary sacrifice programs, benefits, and the application process. This information will be communicated through various channels, including email, intranet, and workshops.

Compliance

The Company is committed to ensuring that all salary sacrifice arrangements are fully compliant with UK tax and employment laws, as well as relevant regulations set forth by HM Revenue & Customs.

Disclaimer

The information provided in this policy is intended to offer a general overview of the Company's salary sacrifice programs within the context of UK regulations. It is not intended to provide financial or tax advice. Employees are strongly advised to seek advice from independent financial advisors before making any decisions.

Review and Amendment

This policy will be reviewed periodically to ensure its alignment with UK legislation and its effectiveness. The Company reserves the right to amend, modify, or terminate any part of this policy in compliance with UK regulations.

Contact Information

For inquiries or clarifications related to this policy, employees may contact the HR Department at [HR Contact Information].

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This policy [does not] form[s] part of your terms and conditions of employment.

Version: [1.0]

Issue date: [date]

Author: [name, job title]

Why buy our Salary sacrifice policy template?

  • It's easily editable and implementable, saving you time and money
  • It's designed by CIPD accedited Chartered HR practitioners with operational experience in this area
  • You will maintain compliance with ACAS guidelines, legislation, and industry best practices
What other advantages does buying from hrdocbox.co.uk offer?
  • Email notifications for any updates made to this template or its accompanying materials
  • 12 months of unrestricted access without any additional costs (any update in that period is free to you)
  • A 25% discount on all library, toolkit, and template purchases/renewals

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I have been using the service now for around 6 months and it has been really useful in developing and updating polices and processes.
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