‘Salary Packaging’ is a particular type of financial agreement between employers and employees, by which the employer is allowed to deduct a pre-fixed amount from the salary of the employee, and as a replacement for this relinquishment, the employer agrees to buy various kinds of valuable assets to the concerned employee, through a particular financial firm, which will be the third party participator of the contract. The various goods that can be procured by the employee, by employing this typical method are ‘motor vehicles’, ‘computers’, ‘laptops’, ‘notebooks’, ‘iPads’, ‘Tablets’, ‘GRPS units’, ‘income protection insurance’ schemes, ‘education experience’, ‘parking’ and ‘fuel’ expenses.
This method is a fitting tool for all employers, by which they can augment the quality of their ‘Human Resource Management’. They will be able to invest wisely on their employees, and through this method, they can reap good profits by augmenting the productivity of the employees. The employees, on the other hand, will be benefited considerably, because, this scheme will enable them to procure various valuable goods, without damaging their pockets considerably. Moreover, they will be able to reduce their tax-levels, as the salary deduction will be done, straight from their pre-tax income. If the employees buy a motor vehicle by this method, they will be entitled for the vehicle running expenses also, including fuel and maintenance. This will be all the more beneficial for the employees.
The advantages of the employees, while buying a motor vehicle by agreeing to ‘salary packaging’ are:
- They can be owners of new model cars, without damaging the existing strength of their wallet.
- They will be getting good discounts.
- Full maintenance and discounted fuel charges.
- Stress-free maintenance and low running costs. Moreover, they will be getting specialized services.
- Tax and NIC benefits.
Some of the advantages that the employers can gain, by approving the scheme of ‘salary packaging’ are:
- The company will be able to boost the morale of the employees, in a significant manner, which will automatically improve their other ‘Human Resource Management’ functions.
- This ‘morale boosting’ activity will also enhance the fidelity level of the employees, and as a result, they will remain with the company for longer terms.
- The company will be able to save considerably, on their ‘National Insurance Contribution’.
- As the employees are getting a fully maintained vehicle for their use, they will be more prompt in their official duties.
- The productivity of the employees can be augmented significantly.
The best way for finding out some locally famous, and at the same time, professional, as well as trustworthy financial establishments that are engaged in various leasing business activities such as ‘salary package’, is to google the phrase salary packaging car. Obviously, you will be connected to various web pages of the financial agencies that undertake such tasks. But the employees will have to be prudent, while selecting such a financial firm; they must take the needed steps to ascertain the professional ethics and service quality of the financial firm, before signing the contract. It will be always better to have some discussions with some of their clientele, whether present or past. One can also check the various testimonials and client recommendations, for determining the reliability and service quality of the firm.
Category: Saving Money