Employee Payroll Deduction Schemes
Employee Payroll Deduction Schemes allow individuals to save regularly, direct from your pay and before it reaches your bank account. For many people, this is the easiest way to save while giving them all the benefits of joining their local credit union.
Payroll deduction schemes build employees’ financial resilience by helping them save directly from their salary, savers also earn a return on their instant access savings in the form of an annual dividend. Workers who save with a credit union at work have average savings of £900.00 compared to less than £100.00 of savings for around half the people in the West Midlands.
Having a nest egg can make a big difference when employees are faced with an emergency, failed MOT or utility bill and those without one can often turn to high street lenders and loan sharks and soon see themselves falling into spiralling debt. Employees can apply for loans between £1000.00 and £10,000.00 and repay them directly from their salary.
For the employer a payroll savings scheme is a free benefit that can be added as part of your employee benefits package and helps to manage your staff’s financial security. By offering a cost-free staff benefit, employers can enhance the package available to their employees while improving the prospects of staff recruitment and retention.
Furthermore, by supporting a not-for-profit, community-based organisation, your company can increase its corporate social responsibility profile while strengthening employee relationships
If you’d like to start an employee scheme with a credit union find your local credit union here.