Employees have the opportunity to save on the cost of nursery care for their children, through tax and National Insurance exemptions.
By agreeing to give up some of your gross contractual salary in exchange for a payment towards the University nursery to cover your childcare costs, you will pay less tax and NI and increase your take-home pay.
nursery+ covers children from four months old, up to school age.
What happens next?
If you would like to take advantage of nursery+, you must complete a form titled "Salary Sacrifice Agreement" to vary your terms and conditions of employment (with regard to salary) and return it to the University nursery before the last working day of the month. The amount you sign up for will be detailed on your payslip for the period of the agreement and the nursery will receive an internal credit.
A number of state benefits are dependent on maintaining a minimum level of National Insurance (NI) contribution (e.g. Statutory Sick Pay and Job Seekers Allowance.) The scheme may not be appropriate if the amount of "pay" that you would receive after specifying a payment to the nursery means that your "pay" or income would be less than £5,564 per annum (£464 per month) rates as at 2012/13.
The national minimum hourly wage is currently £6.19 per hour for staff aged over 22 years. This scheme reduces the amount of cash salary you receive (after the nursery payment has been made). As the minimum wage is calculated on this cash amount, it is crucial that the total value you receive under the scheme does not reduce your hourly rate below £6.19 per hour. If you are unsure whether this applies to you, multiply the hours you work by £6.19. The University would not advise you to reduce your earnings (after the nursery payment is made) to below the lower threshold of £107 per week (2012/13). Any queries in regard to this should be directed to Janet Robertson, Payroll Manager.
Change in your terms and conditions of employment
Please note that by participating in nursery+, you are agreeing to a change in your terms and conditions of employment.