Boost Employee Engagement with Salary Sacrifice Car Schemes in 2025

In 2025, salary sacrifice car schemes are set to become a cornerstone for enhancing employee engagement and experience. As employers prioritise improving these areas, electric vehicle (EV) and lower-emission vehicle salary sacrifice schemes are emerging as a compelling and tax-efficient solution. This article explores how these schemes can support staff well-being, sustainability goals, and retention strategies, with a particular focus on the benefits offered by TCH Salsa.

The Power of Salary Sacrifice Car Schemes

Salary sacrifice car schemes allow employees to exchange a portion of their gross salary for a brand new car, resulting in savings on income tax and National Insurance contributions. For employers, these schemes offer a cost-neutral benefit that can significantly enhance employee engagement and retention.

A recent report highlighted that a third of HR professionals consider improving employee engagement and experience their top priority for 2025. Among employers, 43% rate salary sacrifice car schemes as ‘high’ or ‘very important’, making them a key component in supporting staff well-being and sustainability goals.

Driving Sustainability and Affordability

One of the standout advantages of EV and lower-emission salary sacrifice schemes is their ability to make electric vehicles more affordable for employees. With rising living costs and a growing demand for sustainable transport, these schemes enable employees to drive new, fully insured, and maintained electric cars at reduced costs, thanks to tax efficiencies.

TCH Salsa's salary sacrifice scheme is designed to make electric vehicles accessible to all employees. The scheme includes a comprehensive package covering road tax, routine servicing, maintenance, breakdown cover, tyre replacements, and fully comprehensive insurance. This ensures that employees can enjoy a hassle-free driving experience while contributing to a greener future.

Employer Benefits: Cost Savings and Employee Retention

From an employer's perspective, implementing a salary sacrifice car scheme can lead to substantial National Insurance (NI) contribution savings. At TCH Salsa, 38% of organisations cite NI savings as a major reason for adopting such schemes. Additionally, 37% view it as a cost-neutral benefit, requiring no additional budget to deliver meaningful value to staff.

These savings create a win-win scenario: employees gain access to a desirable benefit, while employers enjoy financial gains without added strain on resources. Moreover, organisations can reinvest these savings to further enhance their employee benefits package or share them directly with employees, making the benefit even more accessible, especially for those on lower salaries.

TCH Salsa: Your Partner in Employee Engagement

TCH Salsa is a leading provider of salary sacrifice car schemes, offering a brand name for TCH Leasing’s salary sacrifice product that enables employers to offer their staff access to one of the most sought-after benefits: a company car, at no cost to the organisation. The scheme allows an employee to surrender a portion of their gross salary in return for a non-cash benefit providing savings on both income tax and national insurance contributions.

With TCH Salsa, employees can acquire a brand new car every 2, 3, or 4 years under a Salary Sacrifice arrangement with their employer. This will enable them to save an amount of tax and national insurance on the remainder of their salary. The sacrifice will be documented as a variation of the terms and conditions of employment. The vehicle will be treated as a company car for benefit in kind purposes but tax and NI savings often outweigh the company car tax.

Salary sacrifice car schemes are poised to play a pivotal role in enhancing employee engagement and retention in 2025. By offering a TCH Salsa salary sacrifice scheme, employers can provide a highly valued benefit that supports sustainability goals, improves staff well-being, and delivers significant cost savings.

For employees, these schemes present an opportunity to drive electric vehicles at an affordable cost, contributing to a greener future while enjoying tax and financial benefits.

Whether you're an employer looking to boost your benefits package or an employee eager to request this benefit, TCH Salsa's salary sacrifice car scheme is a win-win solution.

Enhance employee engagement today