EMPLOYEE BENEFITS PLATFORM - SANTÉFLEX
Holiday Buying Scheme
The holiday buying scheme allows employees to buy extra leave days through salary sacrifice, providing a cost-effective benefit. Employers set limits on the number of days purchasable, giving employees the flexibility to extend their time off when needed. This initiative offers a valuable perk, enhancing work-life balance for employees.
How does it work?
Employers define eligibility criteria and set limits on the number of holiday days employees can purchase. Using the SantéFlex app, employees request a specific number of days, typically calculated based on their prorated day rate. Once approved by a HR admin, the corresponding amount is deducted from their annual gross salary, usually spread over a 12-month period. The additional days are then seamlessly added to their leave balance through the standard holiday booking system.
EMPLOYEE BENEFITS PLATFORM - SANTÉFLEX
Why should I offer the Holiday Buying Scheme benefit to my employees?
The holiday buying scheme benefits from employee Tax and National Insurance savings as well as employer National Insurance savings.
The holiday buying scheme offers employees essential benefits, including flexibility, enhanced well-being, and a sense of value within the workplace. Addressing the concerning rise in burnout among UK workers, which surged by 48% between 2021 and 2022, this scheme enables employees to buy additional leave, easing the strain and encouraging them to take regular breaks throughout the year instead of lengthy periods in one go during standard annual leave. This initiative promotes a healthier work-life balance and contributes to overall employee well-being.
FAQs
Who supplies the Holiday Buying Scheme?
Our holiday buying scheme technology is offered directly by us. Unlike other salary sacrifice schemes, there is no external product provider involved. Our technology delivers all the necessary infrastructure for implementing the holiday buying scheme for your employees.
How does approval work?
You set the parameters beforehand and dictate who qualifies for salary sacrifice, how much they spend, and when. You can either auto-approve or manually approve, depending on your preference. You can even set windows on when the benefit can be accessed.
What level of admin is involved?
If you set parameters beforehand, there is no admin on your end, besides the payroll configuration which is usually straightforward. If you decide to manually approve the order, this will require you to review and approve each request.
How does tax saving work?
The Holiday Buying Scheme operates through a salary sacrifice arrangement. In this setup, employees voluntarily agree to sacrifice a portion of their salary in return for a set number of annual leave days. The value of the days purchased is usually calculated based on their prorated day rate.
Employees have the total value of their day rate reduced from their annual gross salary. The savings are realised through payroll, as there are no tax or National Insurance contributions required for this benefit.
Who is eligible for this benefit?
In order to qualify for salary sacrifice, the sacrificed amount cannot reduce an employee's earnings below the national minimum wage.
What happens if my employee leaves?
Typically, with a salary sacrifice scheme, employers are entitled to deduct any outstanding funds for the cost of that benefit directly from the final paycheck. The same process applies to the Holiday Buying Scheme. If you're concerned about employees not having enough to cover the cost, this should be considered when you set limits on the maximum amount employees can sacrifice.
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