Salary Sacrifice is exactly what the name suggests – it is a process in which the employee voluntarily sacrifices a part of his salary in order to get other benefits from the organization such as a better parking space.
This might sound silly to you but to people working in big corporate concerns, it is actually very normal. Now days, offices are located in huge special economic zones (SEZs) with car parking located at least 500 meters away from the building. So, in essence, you are walking at least one kilometer daily. That is a huge walk especially if the sun is burning down on you.
That is why employees are more than interested in taking a salary sacrifice for a better parking spot. This reduces the time that they have to spend walking and it enables them to do other things.
If you have to walk 500 meter to reach your office, you have to start walking at least five minutes before your reporting time and doing that daily could be difficult for some people. That is why they offer to sacrifice their salaries for a closer parking spot.
Other companies also offer seasonal parking tickets and discounts on parking tickets to employees who offer to take up the car parking salary sacrifice scheme. Choosing this scheme also gives you a guaranteed parking spot. In an unassigned parking system, a guaranteed parking spot is actually more valuable than anything. That is also one of the many reasons why this scheme is popular amongst many corporate employees.
This scheme is also beneficial to the employers in the long run. And, also this is a non-taxable benefit which works to the advantage of both the employer as well as the employee.
Schemes such as this one are usually advertised on the employee benefit portal of a company. The usefulness of such portals is often understated. These portals help the employees to interact with one another, arrange car-pools and talk with the management. So, if your company does not have one, you better make sure that you get one because notice boards are just too old and outdated now days.
By advertising about the salary sacrifice scheme for better parking spaces and offers on your employee portal, you can make some substantial amount of profit as an employer. The parking tickets and spaces will pay themselves back through the salary that your employees sacrifice and you’ll get the additional money as profit.
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