20 Oct 2022
I am now often asked; how can we help our employees with the cost-of-living crisis? Whilst many companies are paying one off cash lump sums to their employees to help, this can be costly to a company and the employee has to pay tax and NI so will typically only receive around 70% of the payment. The payment is a one-off payment that can easily be spent by the employee in a blink of any eye.
So how do companies provide sustainable help to their employees?
Health Cash Plans not only provide vital cash back on every day health and wellbeing benefits, optical, dental etc but many also provide excellent discount schemes.
For a typical minimal cost of e.g., £5-6 per person per month, employers can provide vital cash back towards dental costs, eyesight test and even prescription costs as well access to discount schemes.
Discount schemes can typically save 5% on reloadable shopping cards at major supermarkets. So, on a £100 shopping bill the cost to the employee is only £95 so on a typical family shop of £150 a week there could provide a saving of £30 per month.
With the present giving season fast approaching, discounts vouchers on major brands can again help reduce spending costs for your employees.
For those luxuries we all deserve, reduced cinema tickets can provide a well earnt treat without breaking the bank.
In a recent survey commissioned by Wingate 64% of employers provide access to a Health Cash Plan to their employees which is great BUT how many employees within that 64% are fully aware of the true benefits that these plans can provide?
Promotion of your Health Cash Plan and showing how this plan can really help your employees save money is vital. How many employees pay for i.e., a prescription and don’t know they can claim the current cost back or forget to claim the cost back? The discount schemes are often overlooked but can mean your employees can keep more of their money in their pockets after paying for everyday costs.
If you are one of those 36% of employers who does not provide a health cash plan perhaps now is a good time to help your employees towards their everyday health and wellbeing costs with the added advantage of some great discounts on everyday living costs.
Whilst health cash plans are a benefit in kind, on a typical employer annual cost of £60 per annum per employee, the tax for the employee at basic rate tax is just £12 per year. If an employee claims back just one cost of a prescription this tax cost is virtually negated.
If you would like to consider establishing a health cash plan or if you don’t think your employees are taking full advantage of your current plan, then please do contact Wingate who can help.
For more information on how you can help your employees continually save money on their health and wellbeing costs and take advantage of some valuable discounts contact us via firstname.lastname@example.org or on (T). 01883 332260