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Salary sacrifice employee announcement letter

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Our Salary Sacrifice Employee Announcement Letter template communicates the introduction of a salary sacrifice program, outlining benefits and clarifying the process to employees.

Reading time
How long to understand and implement this letter?
5 mins
Word count
How many words in this letter?
408
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What is a Salary sacrifice employee announcement letter?

This Salary sarifice employee announcement letter serves as a formal announcement to employees regarding the introduction of a salary sacrifice scheme.

The scheme offers employees the opportunity to allocate a portion of their pre-tax salary towards specific benefits, such as pensions or childcare vouchers.

This letter outlines the advantages of participating, explains the impact on net salary, and provides guidance on the enrollment process.

The purpose is to ensure employees have a comprehensive understanding of the scheme, its benefits, and the steps to take if they choose to participate, fostering informed decision-making and active engagement in the program.

Best practice timescale for this to be issued
When should this letter be issued?
At least 1 month before the commencement of the scheme, to allow employees to digest the details and make an informed decsion
Issued by who, to whom
Who should issue this letter, and to whom?
The Employer (you) to the Employee
Applicable legal jurisdictions
In which jurisdictions can this letter be used?
Great Britain & NI (United Kingdom), Worldwide

What legislation and best practice guidelines have been taken into account in the development of this template?

United Kingdom

  • Income Tax (Earnings and Pensions) Act 2003: Defines tax treatment of salary sacrifice schemes and their impact on income tax and National Insurance contributions.

  • National Minimum Wage Act 1998: Ensures that any salary sacrifice arrangement adheres to regulations to prevent employees from falling below the minimum wage threshold.

  • Equality Act 2010: Requires communication about salary sacrifice to avoid discriminatory practices and treat all employees fairly.

  • Pensions Act 2008: Governs pension contributions, which could be affected by salary sacrifice arrangements.

  • Consumer Rights Act 2015: May be relevant if the announcement involves changes to employee benefits, affecting consumer contracts.


Other territories

Consult your jurisdiction's employment legislation or labor laws to ensure compliance with the template. Review the language for local precision.

Salary sacrifice employee announcement [Delete this line]

[Company name]

[Sender address]

 

[date]

[Recipient name]

[Recipient address]

 

Dear [Recipient first name],

 

Explore Your Enhanced Benefits with Salary Sacrifice

We're thrilled to introduce an exciting opportunity to enhance your employee benefits package – our new Salary Sacrifice Program! This program offers you a range of benefits that can help you optimise your remuneration package and improve your overall work-life experience. We believe that by participating, you can unlock valuable benefits that align with your individual needs and financial goals.

What is the Salary Sacrifice Program?

The Salary Sacrifice Program allows you to exchange a portion of your pre-tax salary for specific non-cash benefits provided by the company. This means that you can potentially reduce your taxable income and gain access to a variety of benefits that cater to different aspects of your life.

Benefits Available

Our program covers a wide range of benefits, including but not limited to:

  • [Pension Contributions]
  • [Cycle-to-Work Schemes]
  • [Childcare Vouchers or Tax-Free Childcare]
  • [Health and Wellbeing Initiatives]
  • [Additional Leave Purchase]
  • And More!

Advantages of Participating

Participating in the Salary Sacrifice Program offers several advantages, including:

  • Tax and National Insurance contributions savings
  • Tailored benefits to suit your needs
  • Enhancing your overall remuneration package

How to Learn More

We understand that you may have questions about how the program works and how to choose the benefits that best suit your needs. To help you get started, we've prepared a comprehensive Benefits Selection Guide that outlines each benefit, their implications, and how to make informed choices.

You can access the Benefits Selection Guide on our [Intranet/Company Website] under the [Benefits Section]. We encourage you to review this guide and take the time to explore the available options.

How to Participate

If you're ready to take advantage of the Salary Sacrifice Program, you can initiate the process by completing the Salary Sacrifice Agreement Form. This form will be available on [Intranet/Company Website] and can be submitted electronically. Please make sure to read the form thoroughly and provide accurate information.

Seek Personalised Advice

We understand that your financial situation is unique. If you have questions about the tax implications or need guidance on selecting the best benefits for you, we recommend consulting a financial advisor or tax specialist.

If you have any immediate questions or need assistance, feel free to contact our dedicated HR team at [HR Contact Information].

We're excited about the potential this program holds to enhance your work experience and provide you with valuable benefits. Take your time to explore your options and make choices that reflect your needs and goals.

Yours [faithfully | sincerely],

 

 

[Sender name]

[Sender job title]

[Sender telephone]
[Sender email]

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salary sacrifice employee announcement letter