Salary exchange is a method of arranging employee pension contributions that can benefit both employers and employees.
Essentially, it involves the employee giving up some of their salary in exchange for an increased pension contribution from the employer. This can result in significant tax and National Insurance savings for both parties, whilst also increasing either the value of the employee’s pension contributions or their take home pay.
At COHIBL, we understand that implementing a salary exchange scheme can be a complex process, which is why we offer comprehensive communication, support and education to ensure that your employees fully understand the benefits of this approach. This then encourages them to make an educated decision on their own. Our tried and tested method educates employees by talking to them in simple and easy to understand language, so they can make informed decisions on their own in relation to salary exchange.
Talk to Our Team
There are two processes for salary exchange – opt in and opt out.
Opt in means that employees actively choose to participate in the scheme, while opt out means that employees are automatically enrolled into the pension on the salary exchange method unless they choose to opt out. Both approaches have their benefits and drawbacks, and the choice of which process to follow will depend on the specific needs and goals of your organisation.
Ultimately, salary exchange is an effective way to help employees maximise their pension contributions, whilst also providing significant benefits to the employer. By working with COHIBL, you can ensure that your organisation fully understands the benefits of this approach, and has the support and resources needed as a company to implement it successfully.