Salary sacrifice agreement template
Our Salary Sacrifice Agreement establishes a clear and formal arrangement for employees to voluntarily exchange part of their salary for specific benefits or contributions.
5 mins
What is a Salary sacrifice agreement?
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.
To be signed prior to the salary sacrifice being actioned
The Employee to the Employer (you)
Great Britain & NI (United Kingdom), Worldwide
What legislation or best practices underpin this template / should I be aware of?
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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.
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Refer to your local employment legislation / labor laws to support the execution of the template. Review the wording for local accuracy.
Salary sacrifice agreement
Employee Information
| Full Name: | |
| Department: | |
| Job title: |
Salary Sacrifice Benefit Details
| Chosen Benefit: | |
| Start Date of Arrangement: | |
| Duration of Arrangement: | |
| Amount to be Sacrificed (per pay period): | |
| Total Amount to be Sacrificed (if applicable): | |
| Brief Description of Chosen Benefit: | |
| Agreement Period (if different from Start Date): | |
| Any Specific Conditions or Notes: |
Tax and Financial Implications Acknowledgment
I understand that participating in the salary sacrifice arrangement may have tax and National Insurance contributions implications. I acknowledge that I have been advsed that I may wish to seek independent financial advice to understand the potential impact on my personal financial situation.
Declaration
By signing this form, I agree to the terms and conditions outlined in the Salary Sacrifice Policy. I confirm that the information provided in this form is accurate to the best of my knowledge.
| Employee Signature: | |
| Date: |
What communication / process sequence is this part of?
Salary sacrifice policy
Use this if you require a robust and practical Salary sacrifice policy template.
Why buy our Salary sacrifice agreement 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
- 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
