Salary sacrifice is a term used to describe an arrangement between an employee and an employer in which the employee agrees to receive a reduced salary in exchange for the employer providing additional benefits or allowances. The salary sacrifice is intended to benefit both the employee and the employer, as the employee receives additional benefits and the employer can save on payroll and other costs.

There are a number of benefits that an employee can receive through a salary sacrifice arrangement, including pension contributions, healthcare insurance, and child care vouchers. The employee's reduced salary is taxed at their normal rate, and the additional benefits are generally tax-free or taxed at a lower rate.

Salary sacrifice arrangements can be a useful option for employees who want to increase their take-home pay while also receiving additional benefits. However, it is important to be aware that salary sacrifice can also impact an employee's eligibility for certain benefits and entitlements, such as the National Minimum Wage.

If you have any questions about salary sacrifice or need help with your employment or tax affairs, you may want to consult with a financial or HR professional.