Many companies propose to their staff collect a part of your salary in flexible compensation. But this way of charging is more difficult to estimate, and you cannot always calculate whether you are interested or not, We already talked to you about it on one occasion. In addition, there are many questions that do not finish explaining to you when they make a proposal like this. Tea we solve all those questions that are haunting you, so that you have a more complete overview.
What types of compensation are usually offered?
Within the flexible remuneration that is usually offered, these are the expenses that are usually included:
- Food tickets
- Transport card
- Health insurance
- Pension plans
- Life insurance
- Daycare checks
- Specialized training
How is Flexible Compensation Income priced?
Several of the services mentioned in the previous section do not pay personal income tax if they are included in your salary as compensation in kind. That is, if you have to eat away from home every day with the vouchers they give you or if you take your little ones to the nursery arranged with the company, it may mean that you end up charging more.
You will not pay this tax for Food coupons if you do not spend more than 9 euros a day per day. For spending on kindergarten that reflects your payroll, you will not pay taxes. Nor will you do it for the one health insurance, up to a limit of 500 euros per person per year. And training is not taxed if it is related to your profession. However, Not all compensation in kind is not taxed, there are other services that do.
Does the company make any profit with this part of the salary?
Yes, for the company it also represents a benefit in several ways. In a direct way because those expenses for which you will not pay personal income tax, they will be able to deduct from Corporation Tax. In other words, it represents a tangible economic benefit. But it is also a way of negotiate salary increases without involving such a large expense and it is also a way that the template feel cared for and respected, and therefore more committed with the company.
How does it benefit me?
In addition to what is stated in the previous section on quotes, you can benefit from other types of savings. Of course, as long as you had planned to make the expense before your company proposed to include it in your salary. That is, if you have life insurance, health insurance or a private pension plan, maybe your company can offer you something better. Companies often get better prices because they negotiate larger packages of contracts and an economy of scale benefit may be applied.
Can I refuse to be paid with flexible compensation?
Yes, you could refuse to collect part of your salary in kind. The acceptance of this type of remuneration is completely voluntary. Of course, the company has the right to choose what services it will offer to its staff. However, you can always choose to collect an exclusively monetary salary. In any case, it is also stipulated by law that remuneration in kind cannot exceed 30% of total salary. And the monetary salary that is combined with salary in kind may not be less than minimum interprofessional wage.
How should it appear on the payroll?
All the salary that they pay you in kind It must be specified in your payroll. The value in money calculated for each of the services that make up this part of the salary must be reflected. And the total calculation cannot come, but a detailed account of each service enjoyed, be it the daycare check, the medical insurance, the specialized training …