Overview

Many employers offer extra benefits as part of your pay package. Some benefits use salary sacrifice. This means you agree to give up part of your pay. In return, your employer gives you a benefit, like a leased car or extra annual leave. Because your pay is lower, you may pay less Income Tax and National Insurance.

If you’re in the LGPS, a salary sacrifice scheme will affect your pension. Make sure you understand the impact before you join.

Examples of employee benefits

Your employer may offer:

• Car lease schemes
• Cycle to work schemes
• Technology or home equipment schemes
• Buying extra annual leave
• Childcare vouchers or family benefits (where available).