Make use of your employee benefits to save money

In September 2021, the government announced a national insurance rise from 6 April 2022, which means many of us will see a drop in our take-home pay.

The national insurance increase means, instead of paying contributions of 12% on earnings up to £50,270 and 2% on anything above that, employees will now pay 13.25% and 3.25%, respectively.

Most people don’t think about their employment package and employee benefits when they are trying to save money, but they can be a great way to stop more money from leaving your pocket.

What are employee benefits?

As the saying goes ‘every little helps’, and these days many organisations offer their staff comprehensive benefit options, which – used smartly – can help save you cash.

A cycle to work scheme : the average UK car produces 2 tonnes of CO2 per year, a significant proportion of your carbon footprint. One of the best ways to reduce this is to change the way you travel. A bike scheme can save money on the train, or bus fares and all the extra exercise also helps you stay healthy.

Medical benefits: If you need glasses for your work, your employer will often pay for the lenses. A lot of employers also include free eye tests.

Another common benefit is free flu jabs. Many businesses offer flu jabs to staff as part of a broader suite of health benefits, including free eye tests and ‘wellness checks’.

Employee discounts: Many employers also offer discounts to their staff, which can be used at supermarkets, high street stores and online retailers.

These discounts are often offered through apps such as Perkbox. If your organisation doesn’t use this, it might be a good idea to suggest it.

Low-income earners benefit

Over the next 12 months, anyone earning less than £34,000 a year will pay less in national insurance than they did the previous year.

Stats on how much more tax employees will pay

And don’t forget, that if you’re of state pension age you don’t pay national insurance and nor do people on very low incomes. (You can check the Gov.uk website for more on paying national insurance and tax after state pension age.)

Making better choices

According to research by industry body Grid, 44% of employers admit that their staff are not fully aware of the benefits on offer.

If you’re in employment and not sure if any employer benefits are available to you, speak with your HR team.

To find out more about ways you can cut living costs visit our Tenant News page:

https://www.habinteg.org.uk/tenant-news