A salary sacrifice is a deduction that comes off an employee’s salary before any tax is deducted from the employees pay – such deductions are: Child Care vouchers , car lease schemes etc. The employees tax is then calculated on their pay after the salary sacrifice has been taken saving – therefore less tax is taken as the tax is calculated on less earnings.

Pension calculation and percentage taken each pay period will be based on Pensionable pay – any salary sacrifice payments are not included in pensionable pay therefore you will pay less towards pension if you have a salary sacrifice.

Staff Services and our car leasing / purchase scheme is not a salary sacrifice.