You must be an employee of the Newcastle upon Tyne Hospitals NHS Foundation Trust to take part in a salary sacrifice scheme.

Salary Sacrifice Schemes

Salary sacrifice schemes provide staff with an excellent opportunity to gain a benefit whilst making substantial savings by agreeing to 'sacrifice' (or give up) a portion of salary due under your Contract of Employment in exchange for a service or benefit which has the same value as the cash sacrifice. When you join a salary sacrifice scheme you sign an agreement to vary your terms and conditions relating to pay. Savings for basic rate tax payers can be a high as 38% and for higher rate tax payers as much as 48%. Your savings are made because you pay less PAYE (income tax), National Insurance and Pension contributions.

A good example to provide is an employee earning £20,000 per annum joins the Bike 2 Work Scheme and orders a bike for £1,000. For the next 12 months, the employee agrees to sacrifice that £1,000 and therefore effectively earns £19,000 for the next twelve months and therefore pays less tax, NI and pension.

Important changes to the pension scheme and the impact of salary sacrifice

Each year of your pensionable pay counts separately towards the build up of your final pension benefits. Therefore entering into any salary sacrifice arrangement (e.g Childcare Vouchers, Lease Car Schemes etc) that reduces your gross pensionable pay will have a negative effect on the amount of pension you are able to build up in that year. The overall effect from participating in any salary sacrifice scheme would reduce the amount of final benefits you earn.

If you have any questions about how any exisiting or future participation in a salary sacrifice scheme could impact on your pension, please contact your pensions officer.  You can also visit our page on Salary Sacrifice and it's impact on your pension from the menu on the left hand side.

Approval to join any salary sacrifice scheme is solely at the discretion of the Trust and subject to affordability checks.  For further information in relation to this please contact the Staff Benefits Team.