Offering benefits that improve the life of the staff inside and outside the workspace can increase productivity and commitment to the company and consolidate it. One of the ways to achieve this is with flexible compensation.
Companies that decide to implement this remuneration system give their employees the possibility of obtaining part of their salary in kind, with products and services contracted through the company, optimizing their payroll without involving a salary or cost.
Group retirement plans, restaurant or childcare checks, private health insurance (both for employees and their closest relatives), training programs or transport cards are some of the options in which salary can be transformed in a way voluntary.
Xavier Guillamon, Director of Compensation at Banco Sabadell, points out that “employees who choose to take advantage of these planes can allocate up to a maximum of 30% of their gross annual salary to the payment of these tax-free products and services, increasing their available net salary Thus, workers will increase their available salary while the company improves its value proposition.”
In the Flexible Compensation webinar: tax savings that encourage your employees held on January 24 through Banco Sabadell’s HUB Empresa, Carlos Delgado Planás, president of Employee Flex Platforms and Employee Engagement within the global practice of Employee Benefits of Howden, assured that this system “allows the employee to earn more with the same salary, adapting his remuneration to his personal and family needs at all times, without seeing his labor rights or his contribution to Social Security diminished.”
Benefit of flexible compensation
This method benefits the workers at the same time as the company, since it manages to improve the working environment, retain and retain workers and that they transform their satisfaction into an increase in productivity in their tasks.
For employees, flexible remuneration means an increase in remuneration that is also used directly to cover daily expenses. By receiving up to 30% of their salary in kind, the worker increases their purchasing power thanks to the added value of the chosen service and the personal income tax (IRPF) tax deduction that it entails.
For the company, it’s a low-cost way to raise wages without investing more money. Through flexible remuneration, it also differentiates itself from its competitors, attracting talent and increasing the involvement and productivity of its workers.
It may interest you: The social and tax benefits of flexible remuneration
For this reason, Banco Sabadell offers the Sabadell Flex Empresa platform, a digital solution with a wide range of products and services so that companies offer their employees the possibility of taking advantage of a flexible remuneration system.
Aimed especially at small and medium-sized enterprises (SMEs).
Within Sabadell Flex Empresa, benefits are offered such as the childcare service with no annual limit, the restaurant check, with which you can pay for food in all restaurants that accept Mastercard and can be recharged with up to 220 euros per month for 11 months or the transport card, which allows you to allocate up to 1,500 euros per year for the purchase of collective transport tickets for the use of the employee.
Choosing a health insurance in flexible compensation
Within Sabadell Flex Empresa it is possible to take out the Health Protection Insurance, a private insurance through which employees and family members can access medical, clinical and hospital services, without co-payments and at no extra cost to the company.
With this insurance, the employee has access to the Sanitas medical team, made up of more than 50,000 professionals, specialists and paediatricians without long wait times, top-level hospitals, emergencies and video consultations 24 hours a day in more than 37 medical specialties. All this, exempt from paying personal income tax with up to a maximum of 500 euros per person.
And with the advantages of Sabadell BluaU included, such as home analysis, reimbursement of pharmacy expenses and digital dermatological diagnosis for employees and family members that you decide to include in your policy.
Supplement the retirement pension
Banco Sabadell also offers a special retirement plan within Sabadell Flex Empresa. It is an effective way to save for the future, allocating part of the remuneration to a Collective Retirement Plan, a product with the same tax advantages as other pension plans, and without the limit of being able to contribute a maximum of 1,500 euros. per year with the right to deduction in the Income statement.
This retirement plan invests with the life-cycle philosophy, so that each employee’s retirement plan becomes more conservative as the time of retirement approaches.
In addition, it enjoys extensive coverage, resulting in beneficiaries in the event of retirement, disability or dependency of the workers themselves and, in the event of death, the persons designated. From a fiscal point of view, taxation can be deferred until the benefit is collected, when it can be perceived as income from work in personal income tax. In the event of death, it is taxed as inheritance and gift tax.
In order to implement a compensation plan such as the one offered by Banco Sabadell, the first step that a company must take is to identify the short, medium and long-term objectives that are intended to be achieved with its implementation. For this reason, professional advice is essential to know which products to make available to the workforce based on the characteristics of the company.
MADE BY ALAYANS STUDIO This content has been produced by ALAYANS STUDIO, Henneo’s Branded Content unit.
