[1] It was introduced by the British government in 1980, with HM Revenue & Customs approval, according to a model set by the Treasury.
The employee then chooses to save between £5 and £500 per month out of their net pay over a three or five-year term.
The bonuses are equivalent to fixed rate interest and are set by the Treasury.
Companies must offer sharesave schemes to all employees who meet the eligibility criteria, which often includes a requirement to remain in employment for at least 5 years.
The Confederation of British Industry (CBI) and major political parties have acknowledged the benefits of employee shared ownership[citation needed].