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HomeLatest NewsThe social and tax benefits of flexible remuneration

The social and tax benefits of flexible remuneration

Date: February 25, 2024 Time: 18:55:09

Employee motivation has become a fundamental pillar for companies. A factor that, in addition to improving professional performance, also enables a better working environment and helps retain talent. One of the options to achieve this is flexible remuneration, which offers benefits to both companies and workers.

Flexible remuneration is a remuneration system that allows part of a payroll to be paid in kind without entailing a higher salary cost for the company and guarantees tax benefits for those employees who take advantage of it.

Through the contracting of certain products and services through the company, among which are retirement plans, transport cards, restaurant or childcare checks, private health insurance (both for employees and their closest relatives). ) or training programs, this salary option can increase the level of commitment of the staff and increase their motivation.

“Flexible remuneration is a voluntary system that allows employees to earn more with the same salary, adapting their remuneration to their personal and family needs at all times,” explains Carlos Delgado Planás, president of Employee Flex Platforms and Employee Engagement within the global Howden’s Employee Benefits Practice, who will participate in the Flexible Compensation webinar: tax savings that encourage your employees, organized through Banco Sabadell’s HUB Empresa.

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SIGN UP FOR THE WEBINAR

Sign up for the Flexible Remuneration webinar: tax savings that encourage your employees, with Rosa Moya, director of Business Welfare at Banco Sabadell; Elena González Mena, Sabadell Flex Company specialist at Banco Sabadell; Carles Soldevila, director of the Savings and Pensions Insurance Value Proposition at BanSabadell Vida y Pensiones; Carlos Delgado Planás, President of Employee Flex Platforms and Employee Engagement within Howden’s global Employee Benefits practice, and Montse Castillo Garcia, Labor & Payroll Manager at Cuatrecasas. Organized through HUB Empresa of Banco Sabadell. When: January 24, at 4:00 p.m.

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Benefit of flexible compensation

Flexible remuneration is a system with which both parties win, since the employee is able to receive services at a lower cost and have a tax exemption in personal income tax (IRPF) and, at the same time, the companies do not have to allocate more resources to increase wages.

An employee increases their purchasing power given that the tax benefit makes them receive a higher salary with the same expenses and optimizes their available net monthly salary through a personal income tax exemption of up to 30% of the gross annual salary, receiving services that It generates added value at a lower cost. From the company side, it is not necessary to invest more money in increasing salaries, since with this system it manages to increase its attractiveness, differentiating itself from its competitors, attracting more talent and boosting the involvement of workers and their productivity.

It may interest you: Flexible remuneration: advantages for companies and workers

Adapted to the needs of the employee

The contracting of products or services within the flexible remuneration is a voluntary decision of the worker that has no effect on his Social Security contribution base. In fact, it is the employee himself who can adjust this salary option to his preferences.

A possibility offered by the digital platform Sabadell Flex Empresa. A solution aimed especially at small and medium-sized enterprises (SMEs), with a wide range of products and services so that companies offer their employees the possibility of taking advantage of a flexible remuneration system that adapts to the needs of each company. and allows companies to increase the net purchasing power of all or part of their workforce in a voluntary, convenient and digital way. Banco Sabadell is the first bank to offer a product of these characteristics.

Within Sabadell Flex Empresa, it is possible to contract the Health Protection Insurance, facilitating access to Sanitas medical, clinical and hospital services, without co-payments or extra costs for the company. In addition, users of the Banco Sabadell Health Protection Insurance can take advantage of all the digital advantages of Sabadell BluaU, such as home tests, reimbursement of pharmacy expenses and digital dermatological diagnosis. The employee can also include his family in the policy so that he has access to medical assistance and all coverage.

Supplement the retirement pension

The Collective Retirement Plan is another of the products that can be contracted with Sabadell Flex Empresa. A product that offers the same tax advantages as pension plans and without the limit of being able to contribute a maximum of 1,500 euros per year with the right to deduct in the Income statement. This retirement plan is inverted using the life-cycle philosophy, so it becomes more conservative as you get closer to retirement.

“Savings for retirement is one of the social benefits most valued by employees, so companies that offer this benefit achieve greater loyalty and motivation from their workforce, also attracting more talent,” says Esther Pichardo, director of Ahorrodo and Pensions of BanSabadell Vida y Pensiones.

To implement a flexible remuneration plan such as the one offered by Banco Sabadell, the first step is to identify the short, medium and long-term objectives that are intended to be achieved with its implementation. To do this, the entity itself can advise you on what services or 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.

* This website provides news content gathered from various internet sources. It is crucial to understand that we are not responsible for the accuracy, completeness, or reliability of the information presented Read More

Puck Henry
Puck Henry
Puck Henry is an editor for ePrimefeed covering all types of news.
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