Employees worry about higher living costs when things like prices and inflation go up. PwC found that many people in the UK are worried about this and think it’s partly a business problem to solve.
Businesses can help by giving their employees tools like loans and money-saving tips. But just giving more money as salaries might make inflation worse.
Instead of only raising wages, businesses can take a broader approach to help employees. Some solutions might even have tax benefits for both the business and the employees.
So, if you’re a business owner, there are different things you can do to help your employees during tough economic times. One such avenue, gaining traction for its dual advantage, is Salary Exchange.
Understanding Salary Exchange
Salary Exchange, a renowned zero-cost employee benefit, offers a compelling strategy to optimise tax benefits. This approach allows employers to redirect a portion of an employee’s salary into various benefits, such as contributions to a workplace pension scheme, in exchange for a reduced salary. By implementing Salary Exchange, employers can significantly curtail their National Insurance liabilities while simultaneously bolstering the net pay of their employees.
Benefits for Employees and Employers
The allure of Salary Exchange lies in its ability to provide substantial benefits for both parties involved. Employees experience an increase in their take-home pay due to reduced deductions, while also amplifying their contributions to their workplace pension. This enhancement in financial security becomes particularly invaluable during challenging economic climates, allowing individuals to fortify their retirement savings while coping with rising living costs.
For employers, the advantages are equally compelling. Beyond the immediate tax savings, Salary Exchange enables businesses to enhance their benefits package without incurring additional costs. This not only aids in attracting and retaining talent but also fosters a positive workplace culture by demonstrating a commitment to employee financial wellness.
Embracing Financial Empowerment Through Collaboration
In these challenging times, the collaborative effort between employers and service providers like Husky holds immense promise.
Offering Salary Exchange not only aligns with fiscal prudence but also symbolises a commitment to empowering employees amid economic uncertainties. By facilitating increased take-home pay and robust pension contributions, businesses can actively contribute to the financial security and well-being of their workforce.
How to Get Started?
Husky equips both the company and workers with all the information required for a thorough understanding of Salary Exchange.
Employers often find setting up schemes too complicated or costly. That’s where Husky comes in: its powerful technology automates the entire process, making Salary Exchange setup and management affordable right from the start.
The Husky App automates contractual agreements based on worker requests, significantly reducing the time required to draft, prepare for signing, and communicate future changes.
Husky has been serving the UK since 2012, delighting over 2000 customers. Ready to learn more? Book a demo with our team! They’ll address all your queries, crunch the numbers on potential savings, and guide you through the first steps. Click ‘Book a Demo’ below or use this link to get started.
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We setup and manage your pensions, payroll, and salary exchange—all in one place, ensuring compliance every step of the way.
