In recent years, employees have often been asked to defer pay rises or reduce holidays in order to safeguard their jobs, so when they hear about so-called 'salary sacrifice' schemes emanating from HR, who can blame them for imagining a further shrinking paypacket?
For once, that's not the case. Salary sacrifice arrangements can actually put more cash into the hands of employees and employers.
Salary sacrifice schemes are a means of providing government-approved perks, free of tax and national insurance. Childcare vouchers or cycle-to-work schemes can be paid for out of gross pay, saving employees tax and national insurance contributions on the value of the benefit.