Frugal – payroll giving

Have you heard of payroll giving? I have been with my current employer for over six years and only found out about it this month. I read about it somewhere online and then had to call my employer’s payroll department as there was no information on the staff website. Cue lots of shouting across desks as no one in the payroll department seemed to be sure about whether it was offered here either. In the end, it turns out that it is an option, so I’ve set it up and am waiting to see how it affects my next salary payment.

With payroll giving, if you want to make a regular donation to charity, you can set it up to come directly out of your gross salary. Obviously this is cheaper for you as you don’t pay tax on the donation. So what would cost you £10 after you’ve been paid, costs you £8 before you’ve been paid. As I was donating around £50/month from post-tax salary, switching to payroll giving has allowed me to give an extra £10/month to the charity of my choice, so I’m very happy with that.

My employer is usually quite good at publicising staff benefits, so if I didn’t know about it here, I imagine it’s a well-kept secret with other employers as well. If you already give to charity, it’s definitely worth checking out. More information about payroll giving.

If you don’t already give to charity, you might like to read “The Life you can Save” by Peter Singer or go to his website. He suggests that if those who can afford it give between 1-3% of their salary, we can eradicate global extreme poverty.


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