Your employee’s contract must be clear on what their cash and non-cash entitlements are at any given time. If your employee wants to opt in or out of a salary sacrifice arrangement, you must alter their contract with each change. Change the terms of a salary sacrifice arrangement Employers must put procedures in place to cap salary sacrifice deduction and ensure NMW rates are maintained.
Your employee needs to agree to this change.Ī salary sacrifice arrangement must not reduce an employee’s cash earnings below the National Minimum Wage ( NMW) rates. A salary sacrifice arrangement is an agreement to reduce an employee’s entitlement to cash pay, usually in returnĪs an employer, you can set up a salary sacrifice arrangement by changing the terms of your employee’s employment contract.
