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Three reasons why NFP salary packaging could work for you

17 June 2021 at 5:10 pm
Maggie Coggan
We take a look at why a good salary package is about more than just money 

Maggie Coggan | 17 June 2021 at 5:10 pm


Three reasons why NFP salary packaging could work for you
17 June 2021 at 5:10 pm

We take a look at why a good salary package is about more than just money 

Because charities and not for profits don’t have a huge amount of cash to splash, hefty salaries are not common across the majority of organisations. 

While most people working in the for-purpose sector aren’t there for the money, it is important that they are remunerated in some way or another, and most commonly, this comes in the form of salary packaging, or salary sacrificing as it’s commonly called. 

See more: NFP salaries remain steady amid COVID chaos 

Despite what the name suggests, it doesn’t have to be a sacrifice. It can mean money going towards a company vehicle, towards a mortgage payment, towards rent, or extra days off in the year.  

But if you’re unfamiliar with how NFP salary packaging works, it can be confusing. It’s why we reached out to Tanya Gyatso, World Vision Australia’s talent acquisition manager, to find out her top three benefits.

  1. More money in your pocket 

One of the benefits of NFP salary packaging is that because it lowers your taxable income, it increases your take-home pay at the end of the fortnight or month. 

You are even able to get an everyday purchase card that you can use for groceries, bills, gym memberships, and school fees, up to the salary cap that you have chosen. 

“This means more money in your pocket to spend on the things that you want with your day-to-day living choices,” Gyatso said.

  1. Salary packaging is guaranteed 

Given the turbulent conditions of the past year, something most employees are looking for is security in their job. Because salary packaging isn’t linked to company profits or revenue making, Gyatso said it’s one benefit you can always rely on, even in the toughest of times. 

“I think that’s something that’s really important in these times,” she said. 

  1. It’s a signifier of company culture 

Generous salary packaging options can also be a signifier of the culture of the organisation, and the importance they place on treating their staff well.  

“World Vision Australia and the NFP sector in general are really focused on making the world a better place for people,” Gyatso said. 

“And [salary packaging is] a part of that process of making employees feel like they’re valued and that they’re cared for, and that their contribution is valued because they’re doing so much for others as well.” 

Maggie Coggan  |  Journalist  |  @MaggieCoggan

Maggie Coggan is a journalist at Pro Bono News covering the social sector.

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