Government urged to alter salary sacrifice rules for lowest paid

EV salary sacrifice and fleet management specialist, Fleet Evolution, is calling on the Government to amend the rules governing salary sacrifice and the lowest paid, as the current laws discriminate against the very people they are designed to protect.

Vauxhall Corsa-e (Image:

Vauxhall Corsa-e (Image:

Under the existing rules, no employee can enter into a salary sacrifice scheme for assets of any kind, be they cars, bikes, pensions or healthcare, if by doing so the arrangement takes their take-home pay below the National Living Wage (NLW).

The NLW is the statutory minimum wage rate that must be paid to workers aged 23 and over. It currently stands at £9.50 per hour, a standard that came in from April this year and was up from £8.91 in the previous tax year.

The intention is to protect the lowest paid workers, ensure they have a minimum standard of living and prevent them from getting into financial hardship.

However, argues Fleet Evolution founder and managing director, Andrew Leech, the rules which were designed to protect the lowest paid are ironically hurting the very people they were intended to safeguard.

Read more: Fleetpoint

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