Disadvantages
In the UK these benefits are often taxed at the individual's normal tax rate, which can prove expensive if there is no financial advantage to the individual from the benefit.
The UK system of state pension provision is dependent upon the payment of National Insurance Contributions (NIC). Salary exchange schemes will result in reduced NIC payments and so are also liable to reduce the state benefits, most notably the state second pension.
Read more about this topic: Employee Benefit