HOW DOES IT WORK? Participants in this kind of scheme are entering into a savings contract, so that document will contain the key information and details relevant to the agreement. Among the questions that need to be answered at the outset are: How long will the plan last? What contributions are being made by participants? What financial institution will hold the savings? On the length of the plan, companies will generally opt for an SAYE lasting three or five years. Five years might be more attractive to the company in terms of encouraging staff retention, but it is also necessary to consider the employee perspective. With this in mind, depending upon the circumstances, a three-year term might be an easier sell when encouraging participation – especially if dealing with a younger workforce. On the size of the contribution, again, individual companies will have their own ideas, preferences, and needs, but the relevant legislation around SAYEs sets out that individual monthly contributions can range from €12 to €500.
IN A SAYE, AN INDIVIDUAL’S CONTRIBUTION CAN RANGE BETWEEN €12 - €500 EACH MONTH.
11
Powered by FlippingBook