FLEXIBLE COMPENSATION PLANS
A flexible compensation policy significantly contributes to improving employee well-being, productivity, and efficiency, enhances the company’s brand image, and, in the medium and long term, its bottom line.
FLEXIBLE COMPENSATION PLANS
A policy that includes flexible compensation plans significantly contributes to improving employee well-being, productivity, and efficiency, enhances the company’s brand image, and, in the medium and long term, its bottom line.
WHAT IS FLEXIBLE COMPENSATION?
One of the major challenges companies face today is improving their employees’ well-being. To achieve this, it is essential to implement compensation policies that offer a wider range of social benefits.
Flexible compensation plans allow companies to expand the offering of employee benefits at no additional cost to the company and with economic and tax advantages for the employee. This enables the employee to allocate part of their salary to the purchase of products in order to benefit from tax exemptions.
It is regulated under Law 35/2006 of November 28 on Personal Income Tax (IRPF) and Royal Decree 439/2007 of March 30, which state the following:
Main Products
Flexible compensation programs are implemented in companies based on the needs and characteristics of their workforce.
Since these are not standardized programs, they depend on:
Not all employee benefits are subject to the same tax exemption. Additionally, the applicable taxation will depend on the region within Spain where they are contracted.
Benefits for Employees
Below are the most requested benefits that are tax-exempt in most regions:
- Health insurance
- Meal vouchers
- Childcare vouchers
- Transportation
- Training
- Retirement savings insurance
These benefits will still represent an expense for the employee, but with more efficient management, as they will save on income tax (IRPF) when contracting each of them, thereby increasing their available net salary.
What is MASXTUNOMINA?
Managing flexible compensation can sometimes be an additional administrative burden for companies, but by incorporating a management tool, it allows companies to:
Alkora offers MasXTuNomina as a management tool available to all companies to support the creation, implementation, and management of these benefit policies.
Reduce administrative workload
Enable self-service enrollment by employees
Manage benefits automatically and more efficiently
MAIN FEATURES
OTHER SECTORS:
