How to use employee benefits to support low-paid staff

If you're struggling to retain your low-paid staff, offering budget-boosting employee benefits could be the game-changer you're looking for. 

But before we take a look at how the right perks can stretch your staff’s wages, let’s explore the current financial landscape for those in low-wage positions.

The Office for National Statistics reports that 3.4% of employee jobs were low-paid in 2024 with the National Living Wage set to reach £12.21 per hour in April 2025. Employees earning the least are typically younger, aged 16 to 21, and work in elementary roles such as bar staff, cleaners, or in the hospitality industry.

Low-paid workers are more likely to experience financial hardship so it's no surprise that: 

• - More than one in four adults said that they were not coping or finding it difficult to cope with their finances in 2024
• - Nearly three-quarters of employees reported that the cost of living crisis left them feeling more anxious about their finances
• - 74% of employees don't discuss their financial worries with employers as they do not want them to know or are ashamed 

Our own research found that 65% of employees agreed that employee benefits should be part of the solution to help them manage financial costs on an ongoing basis. The Chartered Institute of Personnel and Development (CIPD) agrees, stating that offering financial wellbeing benefits is an effective way of stretching employees' earnings.  

Luckily, there is a cost-saving solution available: salary sacrifice schemes. These tax-efficient employee benefits can help employee salaries go further as the payments are taken from the gross income, which leads to savings on income tax and national insurance. 

In this article, you'll discover how tax-efficient employee benefits, such as cashback and discounted gym memberships, can boost your low-paid staff's spending power, improve their financial wellbeing, and make them feel genuinely valued at work.

The benefits of supporting low-wage workers

Rising living expenses are an unwelcome trend for everyone but can be a particular strain for those earning the minimum wage. In late 2024, over half of adults in the UK reported an increase in the cost of living, largely due to increased food costs, rising energy bills, and the soaring price of fuel. 

When you consider that

• - Almost one in four UK workers is planning to leave their job in 2025
• - The cost of employee turnover may range between £11,229 and £74,860 per worker

motivating employees to stay put makes sound business sense. So, let’s have a look at some of the most popular employee benefits. 

Give access to free financial advice  

One of the best ways to improve your employees' financial wellbeing is to help remove the stigma around discussing money worries, according to the Chartered Institute of Personnel and Development.  

Hosting money workshops with practical advice and support on topics such as how to budget, saving hacks, and managing debt will empower your workers to feel more in control of their finances.

You could also provide one-to-one access to a financial professional so your team has the know-how to make smarter choices and build a stronger financial future.

Provide opportunities for career development 

Having the chance to climb the career ladder is important to over nine in ten employees. If there's a clear pathway to professional development, employees are more likely to stay with a business and feel a stronger sense of purpose at work. 

Here are some of the ways in which you can help workers see a future with your company:

• - Provide upskilling opportunities
• - Give access to training programmes
• - Start an internal mentorship scheme
• - Offer chances to gain qualifications

Offer hybrid work arrangements

Issues such as commuting costs and juggling childcare impact workers. For example: 

• - 66% of employees would look for a new job if they had to spend an unreasonable amount on commuting costs
• - 61% of workers would work more if their children had more after-school care

Offering hybrid work arrangements can help combat these challenges by giving workers the flexibility to achieve a better work-life balance. Not only will this cut commuting and childcare costs - which is vital to low-paid staff - but it can boost employee wellbeing, reduce staff absences, and have a positive impact on attracting and retaining talent.

Create a resource-sharing initiative

One person's unwanted item is another person's perfect find. That's why setting up a scheme where employees can trade, swap, and donate everyday essentials they no longer need is a smart way to support them.

Whether it's a dedicated space in the office or online, providing a way for employees to pass on kids' clothes, electronic gadgets, or bikes and books, helps colleagues support each other, saves money, and reduces waste.

Reward employees with paid time off

Research shows that taking time off helps employees lead healthier, more productive lives. Paid time off, in particular, can boost morale, productivity, and employee retention.

Whether to recognise someone's birthday, long service, or as a wellbeing day, paid time off can be life-changing for low-paid workers as it can afford them the freedom to manage their personal and family responsibilities without the fear of being out of pocket. 

Provide home and tech discounts

When you're watching the pennies, the last thing anyone needs is to have to replace expensive white goods. Unfortunately, sometimes we have no choice...and they always seem to go wrong outside of the warranty!

Thankfully, our home & tech salary sacrifice scheme is here to help. The workplace benefit lets employees save up to 8% on thousands of white goods, electrical items, and homeware from Currys and IKEA. So, whether employees need to replace a fridge freezer, TV, or piece of furniture, they can save on the item and spread the cost interest-free. 

That's why it's the most desirable workplace benefit for 57% of employees.

Find out more about the home & tech scheme here.

Give access to Cyclescheme

Commuting to work by car is estimated to cost the average UK worker over £420 a month. Catching a train to work is no less costly, coming in at more than £512 each month. Ouch. 

That's why over half of employees want to cycle to work. Cyclescheme makes it an affordable option for workers with savings of up to 42% off the cost of a brand-new bike, e-bike, and cycling accessories. 

As well as possibly saving employees up to £100 a month, 82% of Cyclescheme participants told us that they feel less stressed after cycle commuting. Plus, your business can save up to 13.8% in Employer National Insurance Contribution, making Cyclescheme a cost-positive workplace benefit.

Read more about Cyclescheme here.

Offer cashback cards

Imagine if your employees could make their money go further just by doing their usual shopping. That's what's on offer with our cashback employee benefit, bYond, which 56% of employees told us made them feel more valued at work. 

Whether it's groceries or coffee runs, employees can earn up to 15% cashback whilst shopping for their everyday essentials. In fact, this simple, feel-good perk can put an extra £500 cash in their pockets over the course of a year. 

Employees can use their bYond prepaid shopping card at over 85 high-street stores, supermarkets, and restaurants including Asda, Sainsbury’s, Primark, and Boots.

You can take a deeper dive into why cashback is a valuable employee benefit here, and get all the facts on bYond here.

Provide gift card savings

Another budget-loving way for low-paid staff to save money is with discounted physical and digital gift cards. For example, Extras Discounts lets employees save up to 15% off the cost of physical and digital gift cards from over 100 big-name brands, including Morrisons, Argos, Halfords, and H&M. 

Whether they're buying a gift card to save on the cost of an everyday purchase or to cut the price of a gift for friends or family, Extras Discounts is a remarkably rewarding workplace benefit.

Take a deeper dive into Extras Discounts here.

Offer personalised lifestyle recommendations

syd™ is a life quality super-app designed to inspire employees to make better choices - for their financial wellbeing, emotional health, and physical wellbeing.

Based on each employee's interactions with the app, syd™ provides powerful personalised recommendations backed by over one million research papers. As a result, employees get real-time actionable insights covering financial literacy, budgeting skills, debt, security, income stability, and more.

No less than 48% of syd™ users have seen a reduction in stress, anxiety, and depression. That's not all. Employee development recommendations based on syd™ help increase employee retention by 15%.

Explore syd™ further here.

Provide reduced gym memberships 

With the average cost of a gym membership in the UK coming in at £47.24 a month, it's no wonder that cost is still a barrier to joining gyms, according to the Health and Fitness Association. 

That's why gym memberships are one of the first outgoings to be dropped when times are tight, which is a shame as active employees are happier, more productive, and take fewer sick days.

MyGymDiscounts is an affordable way for employees to prioritise their health and wellbeing as it offers up to 25% off gym memberships at over 3,000 fitness centres across the UK. Plus, there are no payroll deductions, invoicing, or admin for your business. 

Employees receive a sign-up voucher code or join their favourite gym - e.g. David Lloyd, Virgin Active, Nuffield Health, PureGym, and more - at a discounted cost.

Discover more about MyGymDiscounts here.

Ready to support your low-paid staff?

Thanks to our employee benefits platform, Extras, we can arrange quick and easy access to an employee benefits package personalised to your workforce. 

To kick-start your rewarding employee journey, request a demo, visit our contact page, or sign up here.