Salary sacrifice agreement template

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£9.99
4.3
Customer reviews 3 reviews
UK-specific Editable Instant download 12 months' updates

Our Salary Sacrifice Agreement establishes a clear and formal arrangement for employees to voluntarily exchange part of their salary for specific benefits or contributions.

Salary sacrifice agreement template
2026 Reviewed
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Template

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Employee Information

Full Name:  
Department:  
Job title:  

Salary Sacrifice Benefit Details

Chosen Benefit:  
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£9.99
Specifications
Access 12 months, with updates
Length 1 page • 226 words
Jurisdiction England, Wales, Scotland
Based on UK law, ACAS guidance
Last update 01/10/2026
Update reason Terminology update.
Next review 01/04/2027
Delivery & Format Instant digital delivery, .doc · .txt · email

What is a salary sacrifice agreement?

Salary sacrifice agreement template preview

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.

The wider HR process

Related HR resources and workflow

Explore the HR resources that may be relevant before and / or after using the Salary sacrifice agreement, helping you understand the wider process, maintain appropriate documentation and follow a consistent approach.

Previous
Policies
Salary sacrifice policy

This Salary Sacrifice Policy explains how [Company] operates salary sacrifice arrangements and the principles that apply when employees exchange part of their contractual cash salary for an eligible non-cash benefit.

This
Salary sacrifice agreement
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HR considerations

UK employment law and best practice

This template is designed to support the process, but the document should be used alongside the relevant HR procedure and applied to the circumstances of the individual case.

  • Income Tax (Earnings and Pensions) Act 2003: Defines the tax treatment of salary sacrifice arrangements and benefits.

  • National Minimum Wage Act 1998: Ensures that salary sacrifice does not result in employees earning less than the minimum wage.

  • Equality Act 2010: Prohibits discriminatory practices in salary sacrifice agreements based on protected characteristics.

  • Pensions Act 2008: Regulates pension contributions, including those made through salary sacrifice.

  • 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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Frequently Asked Questions

Can I use this in my small business?

Yes. This template has been designed for organisations of all sizes, including small businesses, charities and growing employers. It follows UK employment law best practice and can be adapted to suit your organisation.

Is it compliant with 2026 UK employment law?

Our templates are developed with UK employment legislation, Acas guidance and HR best practice in mind and are reviewed and updated as relevant requirements change. However, every employment situation is different, so the template should be adapted to the circumstances and checked against the employee's contract and your organisation's procedures before use.

Can I customise it for my organisation?

Yes, we highlight the areas of the document 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.

Do I get instant access to it?

Yes. Once purchased, you'll be able to download it instantly. Templates are provided in editable format (such as .doc or .xls) so you can customise them easily, and in PDF format for easy sharing.

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 the Salary sacrifice agreement template, along with other HR templates and policies for fully managing your situation. These may be more cost-effective if you need deeper advice.

Why should I use this Salary sacrifice agreement template, and not AI to generate it?

AI can produce a document quickly, but effective HR documentation needs to be more than well-written words. It needs to reflect relevant UK employment law, HR best practice, practical considerations and the circumstances in which it will be used. These resources have been professionally developed around that wider HR context, drawing on extensive practical experience, rather than simply generating a generic document from a prompt.

Customer reviews

What people are saying

Back to product

This did exactly what we needed for a fairly routine process

Ama Boateng • 21 Jun 2025

Having the terms written out clearly was particularly useful. We liked having the main responsibilities and expectations set out together. The finished agreement was clear and easy to work through.

A solid piece of HR documentation when we needed to get it right

Louise • 07 May 2025

The document was straightforward to personalise and review before use. The structure helped us spot the areas where our own details needed to be inserted.

We got good use from Salary sacrifice agreement

Fiona • 07 Feb 2025

It gave us a clear written record of what the parties had agreed. It helped keep the arrangement documented consistently.

How this content is developed and reviewed

The Salary sacrifice agreement template is developed using a practical HR methodology that considers current UK employment legislation, ACAS guidance, CIPD good practice and the real-world HR process it supports. Templates and supporting information are regularly reviewed and updated, with additional reviews triggered by significant changes to legislation, guidance or established HR practice, helping ensure each document remains practical, relevant and suitable for UK employers.

About the author

Darryl Horn, Chartered HR Director

Darryl is a Chartered HR professional with over 25 years' experience in senior HR and employee relations roles.

He has extensive practical experience of managing pay and benefits HR processes and founded hrdocbox to provide businesses with practical, professionally developed HR resources grounded in UK employment law and best practice.

HRDocBox has been creating practical UK HR documents since 2009.

Executive recommendation

"Darryl provides support and advice with excellent judgement, and has a strong understanding of people, policies and UK employment legislation."

"He is someone I trust; consistent, dependable, and committed to doing things properly."

RB
Ruth Brock Chief Executive Officer The Hygiene Bank
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