When the data is broken down by sector, salary sacrifice arrangements prove to be most popular for pension schemes within the private sector, whilst in the public sector, relief at source is predominantly used. This result backs the saving seen by using salary sacrifice for National Insurance savings. Within the private sector, PAYE savings can be directed elsewhere, for example reinvesting back into employee reward packages. This question is a new addition to the survey and the CIPP will continue to review how the figures shift in the future. Over 62% of respondents also advised they pay more than the minimum auto-enrolment percentages. Paying more than is required enhances a company’s benefit package and can increase attraction and retention rates. This could be used as a tool to attract new employees where the base salary may not be as competitive when compared with that offered by others within the industry. The CIPP recommend promotion of pension contributions if they are higher than the minimum auto-enrolment requirements, to highlight this is a benefit of working for the organisation. Saving schemes Employee saving schemes are becoming more and more popular as employers play a bigger role in employee financial awareness and wellbeing. Whilst some may be wary of initiating schemes due to potential risks to national minimum/living wage, over 18% of respondents offered this facility to their employees. Those who did offer such schemes advised that less than 25% on average took up the facilities. This figure looks low, however, a one in four uptake of a saving scheme overall is a positive step in encouraging financial awareness.
30% of respondents did advise that in addition to pensions and savings schemes, they operated Additional Voluntary Contributions (AVCs) and Individual Savings Accounts (ISAs) to aid employees in saving for the future.
Expat payroll
Of those who responded to the survey, 17% operated an expat payroll, producing on average 46.7 payslips within tax year 2020/2021.
When asked how much of their time was taken up processing these payments, 30% advised it took up 20% of their time, whilst 70% said it took up less than 10%. Given the average number of payslips on the expat payroll is small, the time taken is reflective of the complexities often involved in these types of international arrangements.
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