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.
- 1 page / 226 words.
- Last updated 16/08/2023.
- Designed for United Kingdom use.
- Suitable for use in other territories; check local laws first.
- Instantly download as Word / PDF / plain text, or send by email.
- Includes 12 months’ access, with all updates to this page provided free of charge and notified to you.
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 |
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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.
It is usually delivered to the Employer / HR by the Employee.
It should be actioned to be signed prior to the salary sacrifice being actioned.
Compliance
Compliance
This Salary sacrifice agreement template incorporates relevant UK laws and HR standards, including those listed below:
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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.
Flowchart
Flowchart
Check which resources should be implemeted before and/or after the Salary sacrifice agreement template, to understand the workflow.
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.
Frequently Asked Questions
Frequently Asked Questions
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Can I use this template in my small business?
Yes. The Salary sacrifice agreement template is designed to be flexible and suitable for organisations of all sizes, including small businesses and charities. It follows UK employment law best practice, so even if you don't have an in-house HR team, you can confidently apply it.
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Is this template compliant with 2025 UK employment law?
Absolutely. All of our templates are drafted with the latest ACAS guidance and UK employment legislation in mind. We review and update them regularly, so you can be confident they remain compliant.
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Can I customise it for my organisation?
Yes, we highlight the areas that you need to update with your own details, and where you need to make decisions to suit your situation. This saves you time and ensures that you meet best practice.
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Do I get instant access?
Yes. Once purchased, you'll be able to download it instantly. Templates are provided in editable Word or Excel format so you can customise them easily, and in PDF format for easy sharing.
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What if I need more help, not just this template?
If you're looking for broader support, we also offer toolkits and library bundles that include this template, along with other HR templates and policies for fully managing your situation. These may be more cost-effective if you need deeper advice.
