Salary sacrifice car schemes ranked as key employee benefit for 2025, research reveals

Research from Tusker, a salary sacrifice car scheme provider, found that 43% of employers rated salary sacrifice car schemes as high or very important.

The research revealed that companies prioritised benefits like company pensions, sick pay, hybrid working, mental health support, and private medical insurance.

Tusker also found that 31% of HR and benefits professionals saw employee experience as the main focus, while 20% said recruitment and being an employer of choice was a major aim.

Cheryl Clements, head of business development at Tusker, said: “With only 14% of employers expecting to offer pay rises above 4% in 2025, the pressure is on to provide benefits that make a real impact.

“Salary sacrifice car schemes, particularly those that offer electric vehicles (EVs), are increasingly being seen as a cost-effective way to deliver value to both employers and employees.

“They help employees manage their budgets more easily while offering a benefit that genuinely improves their lives.”

Additionally, the research revealed that 63% of employers who run salary sacrifice car schemes do so to make electric cars more affordable to staff.

Employers also benefit, with 38% citing National Insurance (NI) contribution savings as a main reason, while 37% said it was a cost-neutral benefit that needed no extra budget.