Childcare salary
sacrifice
Save your employees up to 47% per month with a childcare salary sacrifice solution
Think childcare savings. Think Maji.
What is childcare salary sacrifice?
Childcare salary sacrifice, otherwise known as a workplace nursery scheme, is a cost-effective way for employers to enhance their employee benefits package while saving on National Insurance (NI) contributions.
By allowing employees to exchange a portion of their gross salary in return for their childcare contributions, you provide a tax-efficient solution that helps employees save on childcare costs while reducing your business expenses.
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Over 2000 eligible nurseries
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Average savings of £6,500 per child
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Reduce the impact of NI costs
The benefits of salary sacrifice schemes
Reduce NI and tax liability
Use our savings calculator to see how much your business can save.
Increase take-home pay for employees
Help employees keep more of what they earn through tax-efficient benefits
Attract and retain top talent
Stand out in the market with a benefits package that employees love.
Boost employee wellbeing
Reduce stress and empower your team with tools and education for financial security.
How childcare salary sacrifice works
A childcare salary sacrifice scheme is quick and easy to implement – and a great place to start as part of your employee benefits strategy. Here’s how it works:
Employee agreement
Employees agree to exchange part of their gross salary in return for their employer covering their nursery fees.
Tax savings
The sacrificed amount reduces taxable payroll, lowering employee NI and income tax contributions, and reducing your NI liabilities.
Money to invest
Employers can reinvest NI savings into employees’ benefits or other business priorities
Think you’re missing out on savings? We can help you determine how much you could be saving with a childcare salary sacrifice scheme.
Why Maji?
With Maji’s expertise in supporting SMEs with valuable financial wellbeing technology, this partnership delivers a solution that works for you, your employees, and your bottom line.
Seamless Setup
Our team handles everything from design to implementation with minimal disruption.
Compliance Expertise
We ensure your scheme meets all regulatory requirements and is HMRC compliant.
Tailored Solutions
Our solution is customised to fit your organisation’s needs and workforces’ varying demographics
Proven Impact
Enhance employee engagement and retention while delivering measurable savings
Think beyond childcare benefits. Think Maji.
Financial wellbeing is complex but we’ve got a simple solution fitted for every business and employee profile.
Here’s what you can get from Maji as part of our financial wellbeing platform:
✔ Salary sacrifice schemes
Pension salary sacrifice
Childcare salary sacrifice
Cycle to work
Home and tech purchases
Electric cars
✔ Money management tools for your employees
Financial education resources
Access to our academy with on-demand learning modules. Webinars and guides to empower employees financially
Financial planning and budgeting tools
Access to our budget tracking tool to identify weak points in your spending habits. Financial planning tools for future readiness
Pension coaching that boosts savings
Access to our pension coaching programme that helps employees build a secure future and increases your NI savings by 50%
Exclusive retail deals and discounts
Exclusive deals and discount offers from leading retail brands including grocery stores like Tesco, Asda and Sainsbury’s
✔ Access to money experts
Unlimited 1-1 financial coaching sessions
Expert guidance from certified financial coaches who help shape a financial plan
Free sessions with a mortgage advisor
Expert support to help employees navigate and manage the complexities of home buying
Free sessions with a financial advisor
Access to certified financial experts to support employees with financial uncertainties
Discounts on wills and will writing services
Ensure your employees are safeguarded with affordable estate planning solutions and will writing services
✔ All-in-one benefits hub
Access all your benefits in one place with ease. Add, edit, or manage your benefits seamlessly, whether they’re within or outside of the Maji offering.
Got questions? Read up on the Maji blog
Everything you need to know about Maji’s workplace nursery scheme
The workplace nursery scheme allows employees to pay for their children’s nursery fees on a salary sacrifice basis. As with other salary sacrifice benefits, employees enter into an arrangement where their employer pays the nursery fees for them, in exchange for a deduction from pay.
Think nursery savings. Think Maji.
The easiest way to get started is to book a meeting with our team who can answer any questions or map out your potential savings depending on your requirements.
From there, we’ll send you a proposal to take to your business.
Frequently Asked Questions
Any employer can offer the scheme, and any employee can take part as long as:
– Childcare is provided by OFSTED or Care Commission registered childcare providers
– Children are 0 and 5 years of age
– Employees stay above National Minimum Wage
Approximately 80-90% of nurseries are utilising this scheme.
The Government provides a range of tax exemptions to encourage employers to support employees with childcare costs.
The scheme is available to employers as part of the workplace nursery exemption,
Critically, care must be wholly or partly financed by the employer. This is achieved by:
– The employer contributing substantial funding to the childcare provision – up to 10% of the employers’ NI saving goes to the childcare provider
– Ensuring the employee acts as a representative for the employer to determine how the extra financing is allocated
With Maji, all the administration and the compliance of running this scheme is taken care of, including all contact with nurseries, distribution of payments, implementation and NMW checks for employees.
– No cap on savings for parents
– No cap on the extra funding going to nurseries
– No sign-up or termination fees
– No minimum childcare fee
– Dedicated account manager
– Fully indemnified scheme
It works alongside/with 15 or 30 free hours. For most parents, this scheme replaces tax free childcare, although they can be used alongside each other to pay for different childcare services. Tax free childcare is capped at a maximum saving of 20% of fees or £2k per year, and parents have to make payments via the government portal. The workplace nursery scheme offers uncapped savings of up to 47% of fees and money is sent directly from pay, reducing admin.
