I was interested to hear how/if companies are intending to deal with the N.I. increase in April, especially from organisations whose annual review increase does not land in April (of May/June) and as such messaging can't feasibly be rolled up into the annual increases.
Given all employees will see take-home pay decrease in April think it may be worth saying something.
Initial range of options I have thought of:
a) Say/do nothing and assume they read the news and know it's coming
b) Bundle it into other communications around sal sac bens as a good way to save on income tax and N.I. and you can save even more from April as NI is going up
c) Cash payment either one off or bridging salary increase
Be great to hear others' thoughts on this.
Hi everyone, we've just run an article on how the Health & Social Care Levy will impact benefits, including salary sacrifice. In case you missed it, here's the link: https://reba.global/content/are-your-reward-and-benefits-ready-for-the-health-social-care-levy
Hope it's of use. Thanks, Dawn
When I have queried this point with our pension advisors, their view is that even when it is rebranded as the levy rather than additional NICs it will be treated the same from a salary sacrifice perspective, so it will be calculated on pay after sal sac deductions
We are putting something on payslips and looking into some additional communications at the moment. In terms of salary sacrifice, whilst the increase in the NIC rate will mean greater NI savings through salary sacrifice in 2022/23, does anyone know if the Health and Social Care Levy from April 2023 will be calculated on post salary sacrifice pay?
We're going for option B! Put the money into your piggy bank not into Rishis etc.