Some companies will offer you company benefits when you become an employee. Some of these benefits will cover different aspects from age to money-saving or investment for the future. This guide will inform you of the different benefits you may encounter starting your new job.
If you have just started a new job and you are over the age of 22, you will be automatically enrolled into the work pension scheme. This means that you and your employer will make monthly contributions to your pension pot. It must be noted that of the 6th April 2019 auto-enrolment minimum contributions have gone up – meaning that employers must contribute 3% and employees must contribute 5%. As of 2018, all employers by law must make contributions to your (as an employee) pension. You have the option to say ‘no’ to a pension auto-enrolment but if you do not do anything, you will automatically be opted in and pay the monthly contributions. If you are however, under the age of 22, you must ask your employer to become part of the pension scheme. To be eligible for auto-enrolment you must over 22 years old and must earn over £10,000 (inclusive). If you are younger than 22, although you have the right to sign up for the company pension scheme your employer is not required to contribute to it. The benefit of pensions is that it means you will earn more money over time from yourself and the employer, meaning when you retire, you will have more money.
There are many different types of share schemes companies can offer employees. One of the most common types of share schemes involves employers offering shares within the company at a reduced rate or matching the number of shares that an employee purchases. This would mean that the employee would become a shareholder in the company and would, therefore, have a say when it comes to the decision-making process of the company as a whole e.g. if the company was considering a merge with another company, shareholders would have a say in the decision as they would be a direct investor/partial owner. Meaning the more shares, you hold in a company, the more say you usually have in the company business decisions.
Illness or Injury
There are many different types of illness or injury benefit schemes that employers can offer their employees, including; Sick pay, income protection, private medical insurance, critical illness insurance.
This is sometimes referred to as Death in Service, by which a tax-free lump sum is paid out if an employee died. This can be used to provide support to those who may depend on them financially. The amount that is paid is usually worked out depending on the employees’ salary. You should ensure you understand how much would be paid out and whom to with the employer when this plan is taken out.
There are many other company benefits that an employer may provide to employees. For more information on the above as well as other company benefits, have a look at the Money Advice Service; https://www.moneyadviceservice.org.uk/en/categories/benefits-at-work
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