When employees participate in the salary exchange or salary sacrifice scheme they and the Company will both pay lower National Insurance Contributions (NICs) on the employee's reduced salary. As an employee, you can use your NIC to:
- Increase your payments into your pension plan
- Increase your take-home pay
For companies, this allows you to attract and retain top talent as this will keep your benefit offerings competitive for UK-based employees.
Further to the above benefit, Remote has decided to pass on to employees, 50% of the employer NI savings that it will make as a result of employees choosing to contribute via Salary Exchange. In the current tax year, Employers pay 13.8% in NI contributions. This means that 6.9% of these savings will be contributed to the employees' pension fund.