Salary Sacrifice Agreement Form

If you ask your employer to make payments to a third party based on the salary you earn (for example. B to pay your health insurance premiums, credit refunds, union fees or credit card refunds), these are not an effective agreement on wage victims. These payments are made by third parties from your after-tax or net salary. The agreement on victims of wages must be concluded before receipt or entitlement to benefits. Past earnings should not depend on victims of wages. This contract for wage victims contains the following provisions: Note: This example illustrates how wage victim plans can work. It is not designed as a legal or professional advice. They should not act solely on the basis of the information contained in this example. Specific advice should always be sought by your financial advisor. A scheme for wage victims is also commonly referred to as mass packaging or total compensation packaging.

It is an agreement between an employer and an employee in which the employee agrees to give up part of his future right to a salary or salary. In return, the employer offers them benefits of a similar value. Wage victims may affect a worker`s right to income-related benefits, such as maternity and state supplementary pensions. Exemptions from in-kind benefits do not apply to salary victims` plans. The only benefits that you do not have to assess and do not have to report to the HMRC for a compensation plan are: Super contributions sacrificed to salary under an effective wage victim plan are considered employer contributions. These are not ancillary benefits when paid for an employee at a compliant superfund. However, employers should always check with their system provider to ensure that such rules are allowed. Other plans for wage victims are possible. It is advisable that you and your employer be clear and agree on all the terms of an agreement on pay victims.

The contract is usually written, but can be oral. If you enter into an undocumented wage sacrifice agreement, you may have difficulty establishing the facts of your agreement.