Salary sacrifice schemes

Most childcare vouchers schemes are run through a salary sacrifice; parents agree to ‘sacrifice’ part of their salary for childcare vouchers, for an overall financial gain due to tax and NI savings. Parents nominate the amount to be sacrificed, and can take a maximum of £55 worth of childcare vouchers per week.

A Salary Sacrifice Agreement is a formal revision of a contract of employment, stating that the employee is legally entitled to a lower cash salary plus childcare vouchers. The employee must sign a document agreeing to the new contractual terms. Our standard Salary Sacrifice Agreement complies with all government regulations.

For an example Salary Sacrifice Form click here.