When we talk about remuneration, we mean the consideration that employees receive in exchange for their work and, in modern practice, this includes incentives and social benefits in addition to their salary.

Social benefits are currently a key factor in attracting and retaining talent in your company, as demonstrated by Silicon Valley’s technology giants. These companies have opted to promote this type of remuneration and are now recognised as global leaders in HR policy.

Among the social benefits that employees would value positively, there is little doubt that health insurance is one of the best and commonest services a company can offer. 70% of companies offer it and this figure, taken from a study by the Second Health Insurance Barometer, confirms how important it is for the Human Resources Director or the Financial Director to take employees’ demands for this benefit into account.

In most cases paying for health insurance for employees and their families is an investment the company cannot afford. However, today companies can offer this and other benefits without incurring extra costs through a flexible remuneration plan.

This type of plan allows employees to replace part of their annual monetary remuneration with products and services. Although they are paid for out of the insured person’s salary, they have tax advantages and are exempt, within certain limits, from Personal Income Tax, as stipulated in Article 42.2 of the Law on Personal Income Tax.

The amount spent on these products reduces the tax base, and may even modify the marginal rate payable in Personal Income Tax. The employee’s net salary is thus increased and the savings are even greater if we consider the reduction in cost the company can achieve through bulk purchasing.

Apart from health insurance, benefits include restaurant vouchers, childcare services and transport allowances.

These schemes benefit both companies and workers.

Employees have a series of services available to them at a lower cost, which allows them to save money in income tax, and the company improves the general well-being and motivation of the workforce at a minimum cost.

Improved motivation ultimately leads to less absenteeism and a greater commitment to the business project by workers.

In view of its simplicity and effectiveness, implementing a flexible remuneration plan has become practically imperative, even for medium-sized companies, if they want to remain competitive in terms of remuneration and human resources policies.

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