Salary sacrifice agreement template
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Supporting information
Our Salary Sacrifice Agreement establishes a clear and formal arrangement for employees to voluntarily exchange part of their salary for specific benefits or contributions.
What is this for?
This Salary Sacrifice Agreement facilitates the formal agreement between an employer and an employee regarding salary sacrifice arrangements.
It outlines the terms, benefits, and implications of reducing an employee's salary for non-cash benefits like pensions or childcare vouchers.
The purpose is to ensure clear understanding and compliance with agreed-upon adjustments, promoting a transparent and mutually beneficial arrangement.
Extended guidance
Employment law compliance
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Income Tax (Earnings and Pensions) Act 2003: Defines the tax treatment of salary sacrifice arrangements and benefits.
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National Minimum Wage Act 1998: Ensures that salary sacrifice does not result in employees earning less than the minimum wage.
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Equality Act 2010: Prohibits discriminatory practices in salary sacrifice agreements based on protected characteristics.
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Pensions Act 2008: Regulates pension contributions, including those made through salary sacrifice.
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Data Protection Act 2018 (incorporating GDPR): Requires personal data shared in salary sacrifice forms to be handled according to data protection principles.
Documentation sequence
Salary sacrifice policy
Our salary sacrifice policy template outlines the guidelines and procedures for employees opting into salary sacrifice schemes, promoting transparency and compliance with relevant regulations.
