Making EVs affordable is top motivation for salary sacrifice schemes, finds Tusker

Salary sacrifice provider Tusker has found that 63% of employers that offer salary sacrifice schemes are motivated by giving employees an accessible way to drive an electric vehicle (EV).

More companies are starting to offer the schemes, in lieu of pay rises, as a low-cost employee benefit.

Cheryl Clements, head of business development at Tusker, said: “Because of the significantly lower Benefit-in-Kind (BIK) rates for EVs that are available, there is no cheaper way of an employee getting into a car like this.

“It also helps employees cope with the cost-of-living crisis, because most people still want to drive, and they can save on tax and fuel costs by having an electric car on the scheme, and can budget easier with a fixed cost motoring package.

“We’re hearing anecdotally that having an electric car helps them to feel more secure with their employer as well.”

Offering a salary sacrifice scheme can result in savings for employers, with lower National Insurance (NI) contributions.

38% of employers said this was a factor in the decision, and 37% said salary sacrifice schemes were a cost-free benefit for employers.

47% of employers kept the savings, reinvesting them into other schemes, while 23% put the savings into salary sacrifice schemes, further driving down costs for employees.