New technology up to 50% cheaper – through salary sacrifice

A new smartphone costs 1,200 euros. A high-performance laptop costs even more. And at the end of the month, you often have less left over than you’d like. This is where a solution comes in that many people aren’t aware of: deferred compensation for hardware. What most people know only as a pension scheme works just as well for technology – and right away, not in 30 years’ time. The principle is astonishingly simple: instead of paying from your net salary, the purchase price is deducted from your gross salary. This reduces your tax burden and social security contributions – you save up to 50 per cent compared to a standard purchase. Best of all: you can use your smartphone, laptop or tablet 100% for personal use, without any restrictions. For employers, this scheme is a benefit that costs nothing yet goes down extremely well with staff. In this article, you’ll find out how salary sacrifice for technology works, what specific benefits it offers and how the process runs smoothly.

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Key facts in a nutshell

• Save up to 50% on the hire of smartphones, laptops and tablets – by deducting the cost from your gross salary rather than your net salary, your tax burden and social security contributions are significantly reduced
• Calculate your personal savings: for a device costing 1,200 euros, you’ll save around 360 euros over 24 months – the higher your tax rate, the greater the benefit
• Choose freely from the full range of leading manufacturers such as Apple, Samsung or Lenovo – all devices available
• As an employer, you can offer an attractive benefit at no extra cost – increased staff satisfaction without any additional administrative burden
• Simply submit an application to your employer – they will enter into a framework agreement with the provider, and you will benefit from the latest technology on excellent terms
• Enjoy full legal certainty thanks to the Employee PC Programme, which has been enshrined in law since 2000 and has been audited by the tax authorities

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Why pay out of your net salary when there’s a cheaper way?

Imagine you want to buy a new iPhone for 1,200 euros. Normally, you’d pay this amount out of your net salary – in other words, from money that’s already been taxed. With salary conversion, it works differently: the purchase price is split into monthly instalments and deducted directly from your gross salary before tax and social security contributions are calculated. This reduces your taxable income, meaning you pay less to the tax office. The result: you get the same device for significantly less money. Your employer acts as an intermediary and leases the device on your behalf. You use it entirely for private purposes from day one – without any monitoring or restrictions. After 24 months, you take ownership of the device at an agreed residual value. This approach combines financial benefits with maximum flexibility and makes high-quality technology affordable.

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What exactly is salary sacrifice?

Salary sacrifice means that part of your gross salary is used for a specific purpose – in this case, for hardware. The key difference compared to a standard purchase is that you do not pay from income on which tax has already been paid; instead, the amount is deducted beforehand. This automatically reduces your tax liability and social security contributions. Your employer enters into a hire agreement with you and leases the device. You receive it for entirely private use and, thanks to the tax benefits, pay significantly less than you would if you were to buy it outright. At the end of the term – 24 months – you can purchase the device for a small residual value. This model is legally sound and is subsidised by the government through the Employee PC Scheme.

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‍The Employee PC Programme: Proven for over 20 years

The Employee PC Programme has been in place since 2000 and forms the legal basis for the tax-optimised provision of hardware. The legislature introduced this programme to drive forward digitalisation and make it easier for employees to access modern technology. The key advantage: the scheme is entirely legal, has been audited by the tax authorities and is expressly recognised by the tax authorities. For employers, this means legal certainty without risk. The tax incentive is based on the fact that the provision of devices is treated as a non-cash benefit, which is offset by salary sacrifice. Unlike many other benefits, there are no additional costs. Specialised providers such as JobHandy handle the entire process in a standardised manner, so that neither HR departments nor employees have to deal with complex tax law issues.
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Specific figures: this is how much you actually save

The tax saving can be illustrated with a specific example. Let’s take an iPhone worth 1,200 euros as an example. With a standard purchase, you pay this amount out of your net salary – in other words, from income that has already been taxed. With deferred payment, the amount is deducted from your gross salary over 24 months, which works out at around 30 to 45 euros per month. By reducing your tax burden and social security contributions, you save between 20% and 30%, depending on your personal tax rate. At an average tax rate of 30%, this means total savings of between 360 and 450 euros. The higher your tax rate, the greater the savings. The monthly impact on your net salary is significantly lower than with a gross conversion, as less tax is payable.
Once your employer has signed a framework agreement with JobHandy, you can register with the JobHandy Benefits Shop and use the benefits calculator to work out your individual savings.

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Which devices are eligible?

The Employee PC Programme covers all devices used for data processing. These include laptops, smartphones, tablets, computers, smartwatches and the relevant accessories. High-end gaming laptops, professional workstations and the latest generation of premium smartphones are also eligible. The choice is not limited to specific brands or models – you are free to choose whichever device best suits your needs. The only important thing is that the devices are purchased from a certified supplier. At JobHandy, you have access to an extensive range from all leading manufacturers, such as Apple, Samsung, Lenovo, HP, Dell and many more. You get exactly the technology you want – at significantly more favourable terms.

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Benefits for employees: Save up to 50% and enjoy full private use

As an employee, you benefit from an exceptionally attractive package of benefits. The savings of up to 50% compared to buying outright are the most obvious benefit – but not the only one. You gain immediate access to high-quality technology without having to dip into your savings or take out a loan. The monthly instalments are manageable and are automatically deducted from your salary – you don’t have to worry about a thing. At the same time, you enjoy 100% freedom of private use: you can use your device whenever and however you like, without your employer having any insight or control. At the end of the term, you take ownership of the device for a minimal residual value and become the full owner. In addition, you often benefit from attractive insurance packages covering damage or theft. This model offers enormous financial relief, particularly for families or individuals who regularly need new technology.
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Benefits for companies: Cost-neutral yet effective

For employers, the employee PC scheme is an ideal benefit: it costs nothing, ties up no resources and is extremely well received by the workforce. Unlike many other fringe benefits, you do not need to allocate budgets or make investments. The scheme is entirely cost-neutral, as the cost of the devices is covered by employees’ salary sacrifice. At the same time, you significantly boost your company’s appeal as an employer. In times of skills shortages, benefits that offer genuine added value are a decisive competitive advantage. Employees appreciate the opportunity to obtain high-quality technology at a lower cost – this increases satisfaction, motivation and loyalty. The administrative burden is minimal: specialist providers such as JobHandy handle the entire process, from advice and contract drafting to logistics.

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How the process works

The process for hardware salary sacrifice is simpler than many people think. Once your employer has signed a framework agreement with JobHandy, you can register. First, find out about the available devices and select your preferred model. You then submit a simple application to your employer. Your employer will then enter into a loan agreement with you – all the necessary contract templates are provided by JobHandy. At the same time, the device is ordered and delivered directly to you. The monthly instalment is automatically deducted from your gross salary and transferred to the service provider – this is how the tax savings are realised. You use the device entirely for private purposes from day one. After 24 months, the contract term ends, and the device becomes your property upon payment of a small residual value, or you return it and choose a new model. Throughout the entire contract term, JobHandy handles all administrative and logistical processes – from ordering and invoicing to support. For HR departments, this means: minimal effort, maximum benefit.