In these troubled financial times, everyone is looking for access to affordable financial services. Money worries are of concern not only to those struggling, but to their employers. Financial strain can result in stress and depression, in turn leading to absences and reduced productivity, leading to a vicious circle in which everyone, both employee and employer, is worse off.

Payroll deduction with Highland Communities Credit Union

As an employer, you can meet your corporate social responsibilities by helping your employees develop a financial buffer and getting them into a savings habit that will benefit them for a lifetime – all at no extra cost to your business.

Highland Communities Credit Union also has a range of information and support options for members in financial difficulty or a poor credit history.

What the statistics show

“Sickness and absence cost UK businesses £11.5 billion in 2014, or £380 per employee” – EEF

“13 million people do not have enough savings to cover them for a month should their income drop” – CIPP

3rd largest causes of sickness absence are stress and mental health problems – both of which can be triggered by financial problemsEFF

Benefits of payroll deduction to employers

  • Increased productivity
  • Reduction in sickness and absenteeism
  • Employees feel valued
  • Increased staff motivation and concentration
  • Fulfilling corporate social responsibility
  • Improving staff morale
  • Gaining a good reputation
  • Engaging with the wider community

Benefits of payroll deduction to employees

  • Ethical and secure source of saving
  • Easy and accessible
  • Assists with budgeting
  • Stepping stone to other financial services
  • Provides a buffer in times of need
  • Low-cost source of credit

How does it work?

In order to set up a payroll deduction scheme, simply:

  1. Set up an authorisation process – we will provide the necessary paperwork
  2. Provide a monthly list of employees’ payments to the Credit Union
  3. Deduct said payments from employees’ wages
  4. Deposit the correct amount into the Credit Union’s bank account

Frequently asked questions

Are there any costs to employers?
No. This service is provided by the Credit Union free of charge.

Are there any costs to employees?
No, there are no charges to employees for such a scheme. In order to set up the account however there is a £2 fee plus an annual £5 administration fee.

Are employees’ savings secure?
Absolutely. Like other banks and financial institutions, all savings are protected up to the amount of £85,000 by the FSCS.

Can employees access their account online?
Yes – simply visit the ‘Member’s Area’ of our website and the member can be set up on there following the instructions given.

How much can an employee borrow?
Highland Communities Credit Union offers loans to existing members from £50-£10,000 (subject to terms and conditions) starting from an interest rate of 6.2% APR calculated on a reducing balance.

Do you use credit referencing agencies?
Yes, however it should be noted that past financial difficulties does not automatically prevent applicants from successfully borrowing with us. Credit reference agencies may also be used to verify ID and address.

Do you pay interest on savings?
As a cooperative, Highland Communities Credit Union pays a dividend rather than interest. Dividends are shares of the profit and as such are determined at the end of each financial year.

How do other members pay into their Credit Union savings?
Members can pay by standing order, cash, or cheque. There is no minimum payment. Members can save up to a maximum of £10,000.

Do employees have to give notice to withdraw savings?
No. We can transfer savings to the member’s bank account via BACs by pre-arranged authorisation.

What if an employee wants to stop the deductions?
The employee would inform payroll that they wish to stop the deductions

In order to become a payroll deduction partner, please contact us