definition of salary sacrifice
A salary sacrifice arrangement is an agreement between an employer and an employee to change the terms of the employment contract to reduce the employeeâs entitlement to cash pay.This sacrifice of cash entitlement is usually made in return for some form of non-cash benefit.hanging the terms of a salary sacrifice arrangement. If an employee wants to opt in or out of a salary sacrifice arrangement, employers must alter their contract with each change. The employeeâs contract must be clear on what their cash and non-cash entitlements are at any given time.