Salary sacrifice car schemes are ranked as a leading employee benefit priority for 2025, new research finds.

More than four in 10 employers now rate salary sacrifice car schemes as either high or very important

The Driving Loyalty Through Electric Cars report from Tusker reveals that 43% of employers now rate salary sacrifice car schemes as either high or very important, placing them firmly in the spotlight as a compelling, tax-efficient way to support staff wellbeing, sustainability goals and retention strategies.

Another key finding from the report is that 63% of employers who offer salary sacrifice car schemes do so with the aim of making electric EVs more affordable for their employees. With rising living costs and a growing appetite for sustainable transport, EV salary sacrifice schemes have rapidly become a highly valued and cost-effective benefit, helping employees drive new, fully insured and maintained electric cars for a fixed monthly amount – often at significantly reduced costs thanks to tax efficiencies.

From the employer’s perspective, 38% of organisations cite National Insurance (NI) contribution savings as a major reason for implementing a sal-sac scheme, while 37% view it as a cost-neutral benefit, requiring no additional budget to deliver meaningful value to staff in a win-win scenario.

Organisations are also choosing to reinvest the NI savings they receive in strategic ways. Nearly half (47%) of employers channel these savings back into the business or other employee benefits, helping broaden their overall reward offering. Meanwhile, 23% choose to share the savings directly with employees, subsidising the cost of vehicles further and making the benefit even more accessible, especially for those on lower salaries.

The Tusker study also found that 31% of HR and benefits professionals say improving employee experience and engagement is their top priority for 2025, with 20% identifying that supporting recruitment and becoming an employer of choice is also a major focus.

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, 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.”

Employers such as Landsec have seen significant engagement from staff following the introduction of EV sal-sac schemes. After launching the scheme in 2024 in response to employee demand, the company reported a 26-point increase in staff saying their benefits package met their needs. With around 30% of eligible employees engaging in the scheme within six months, Landsec’s experience highlights how the right benefit can enhance both employee satisfaction and sustainability efforts.

Clements concluded: “As employers look for smarter ways to engage and retain their people, benefits need to be both meaningful and sustainable. Salary sacrifice car schemes tick both boxes, offering employees greater financial security while supporting greener choices. It’s a benefit that truly reflects the changing priorities of today’s workforce.”

The Driving Loyalty Through Electric Cars report from Tusker is online here.