The Surge of Salary Sacrifice Schemes

(Posted on 16/01/24)

In recent times, Salary Sacrifice Schemes have witnessed a remarkable surge, with the BVLRA Leasing Outlook report indicating a substantial 68% year-on-year increase in the third quarter. This growth signifies a notable 12% uptick from the second quarter of 2023.

So, what is the driving force? Many cash allowance drivers are making the switch to salary sacrifice as their existing car finance agreements come to an end. As individuals seek new ways to maximise their benefits, the appeal of salary sacrifice schemes is becoming increasingly apparent.

The BVLRA Leasing  report sheds light on employee benefits, showcasing a shifting preference towards salary sacrifice arrangements. With a substantial increase observed in a relatively short period, the momentum suggests that salary sacrifice schemes are becoming a preferred choice for both employers and employees.

Forecasts indicate that this upward trend will continue, driven by the deliberate move of cash allowance drivers and a growing awareness of the perks linked to salary sacrifice arrangements. As more people understand the financial benefits and enhanced offerings provided by these schemes, the employee benefits landscape is undergoing a significant transformation.

In summary, the increasing popularity of Salary Sacrifice Schemes, as outlined in the BVLRA Leasing report, reflects a broader shift in the modern workforce. This trend suggests a future where employees are more inclined to value the flexibility and financial benefits offered by salary sacrifice arrangements, signifying a significant change in employee benefits.