This page is quite old hence its rather spartan appearance.
Why not check out our Latest Stories page for our newest articles or search our site for anything.
FOOL'S EYE VIEW
Most of us have been guilty of grumbling at some point about the meagreness of our salaries. After all with the rising cost of living, every pound counts and it's worth realising that companies that don't give a "cost of living" rise each year at the very least are effectively giving their employees a pay cut! However, how would you feel if I were to tell you that you could probably grab yourself an effective salary boost, simply by taking advantage of what is already available to you? And no, I don't mean kidnapping your boss and demanding a "pay rise ransom", or stealing all the pens from the stationery cupboard to sell on eBay. This bonus, which could be worth thousands of pounds, is completely above board and legal. So what do you need to do? Essentially, partake of every useful employee benefit available (and relevant) to you. Firstly, drag out your employee benefits paperwork, or have a chat to your HR department/ boss and find out the benefits available. By picking and choosing the right ones to partake in you could save (or gain) yourself hundreds, if not thousands of pounds each year! You may even be able to persuade your employer to introduce some new benefits. To give you an idea here are some of the most commonly available employee benefits: 1. Pension Probably the hottest topic of the moment is pensions. And regardless of the potential reforms, we all know that it's highly unlikely we'll be able to live on the State pension alone, when we come to retire. This means, in a nutshell, that we need to start putting money aside now if we don't want to grow old in abject poverty. Most companies offer a pension scheme, which is usually one of the easiest ways to save for retirement. However, did you realise that participating can also be a great way of grabbing a few extra quid from the boss? Many companies contribute to employee pension schemes on their employees' behalf, which means that the cash you pay in could find itself boosted significantly, straight away. For example, say a 30-year old earning £25,000 each year decides to join his company's pension scheme. His company will match his contribution up to a maximum of 5% of his salary. So by contributing 5% of his salary will mean that his pension pot will be boosted by an extra 5%, or £1,250, for free. Saying no to that is like turning down a £1,250 pay rise! Plus, basic rate tax relief on pension contributions will boost your pension pot a little more (higher rate tax payers must remember to claim back their extra 18 per cent via their tax return). Find out more about pensions in our Pensions Centre. 2. Sharesave If, like many, you know the term Sharesave but have never taken the time to find out what it is, you could have been losing out on potential cash for many years! Essentially, the Sharesave scheme allows employees to save between £5 and £250 monthly for three or five years. When this time is up you will receive a tax-free bonus, and be given the choice to either take your cash and run, or buy shares in your company with it - and depending on performance this means that you can potentially make some serious money. What's more, many schemes give a discount on the buying price, which can be as much as 20% off the market price. This means that you could be in a win-win situation, as even if the share price hasn't done very well you'll still make a profit, as you're buying so low. So find out if your employer offers a Sharesave scheme - you'd be crazy to miss out! 3. Insurance If you've ever taken out a term life insurance policy you'll know that, although they are not terribly expensive, they're not free either. A 35 year-old, non-smoking man can typically expect to be able to be able to buy £200,000 worth of cover for about £20 a month. However, a large number of companies provide life cover for their employees for absolutely nothing - effectively saving you that £240 each year. What's more, in addition to life insurance many companies offer other, more expensive types of insurance too, such as income protection and critical illness cover, which can be worth hundreds more. Check out the details of the schemes your company has enrolled in. You may find that your policies will cover your spouse and children too. And even if you have to pay a premium, you will probably still find it's cheaper than taking out separate policies yourself. Find out more about insurance in our Insurance Centre. 4. Childcare Vouchers For all you parents out there, have you heard of Childcare Vouchers? If I were to tell you they could save you over £1,000 each year, would that grab your attention? The Childcare voucher scheme essentially means that you can choose to sacrifice some of your salary in return for vouchers, which can be used to pay for childcare. The first £50 can be bought each week free of income tax and National Insurance, meaning that a standard rate taxpayer could save over £800 each year by joining the scheme and a higher rate taxpayer £1,066. And as both parents can purchase the vouchers (as long as their employers are members of the scheme) two higher rate taxpayers would save £2,132 each year. What's more, the scheme is cost neutral to companies too. Find out if your company is a member of the scheme you could be quids in! Find out more at the Childcare voucher site. 5. Home Computing Initiative Need a new computer but don't have the cash to buy one? Then you should find out if your company participates in the Home Computing Initiative (HCI). Essentially, the scheme allows employees to purchase home computers from their employers for less than half the price charged in the shops. Your company would bulk buy computers (at a discount of course) and lease them to its employees over a three-year period. The payments are then deducted from your gross salary each month - meaning that you avoid paying tax and National Insurance (NI) on it. A basic rate taxpayer could therefore save 22% tax, plus 11% NI, and higher rate taxpayers will save even more. What's more, your employer is onto a winner too as not only does this mean it avoids paying NI contributions on this sum on your behalf, it can also claim back the VAT. So before you fork out thousands for a new computer, find out if your company participates in the HCI scheme - you could save hundreds. 6. Share Incentive Plan (SIP) This is another share-based scheme, like Sharesave. However, instead of saving your monthly contribution for three or five years and then buying shares, you purchase shares in your company out of your gross salary (subject to a limit of £125 per month). If your SIP is a "Buy one get one free" scheme, your company will give you a matching share for each one bought, up to a set maximum. You're then locked into the scheme for a set period of three years usually (or you'll lose the free shares) after which time you can sell all of your shares, free of tax and NI! Find out if your company offers a SIP scheme - there's potentially fantastic profits to be made. 7. Other benefits Don't forget to check out the other benefits available from your company. Many larger firms are increasingly offering staff a more flexible package, allowing employees to tailor their benefits according to their individual needs. A number of companies also offer employees to purchase High street and supermarket shopping vouchers at a five or ten per cent discount, which can save a serious sum over the space of a year. If you commute to work, find out if your company will provide an interest free loan to allow you to spread the cost. And many larger companies have special deals with local companies - you may find out that you're entitled to a discount at retailers you use all the time.