{"id":1126,"date":"2021-09-15T15:07:55","date_gmt":"2021-09-15T15:07:55","guid":{"rendered":"https:\/\/ribesalat.com\/flexible-remuneration-programmes-their-benefits-and-development-during-the-pandemic\/"},"modified":"2026-05-29T08:31:17","modified_gmt":"2026-05-29T08:31:17","slug":"flexible-remuneration-programmes-their-benefits-and-development-during-the-pandemic","status":"publish","type":"post","link":"https:\/\/ribesalat.com\/en\/flexible-remuneration-programmes-their-benefits-and-development-during-the-pandemic\/","title":{"rendered":"Flexible Compensation in the Workplace: What It Is, How It Works and Why It Strengthens Your Reward Proposition Without Increasing Costs"},"content":{"rendered":"\n

Flexible compensation is a voluntary compensation model under which an employee allocates part of their gross salary\u2014up to 30%\u2014to goods or services with favourable tax treatment, within the limits set by Article 42 of Spanish Law 35\/2006 on Personal Income Tax<\/a> and Article 26.1 of the Spanish Workers\u2019 Statute<\/a>.<\/p>\n\n\n\n

This model has become an effective compensation lever for organisations seeking to improve the perceived value of total reward without resorting to across-the-board increases in fixed pay. In practice, it allows each professional to voluntarily allocate part of their gross salary to selected goods or services that benefit from favourable tax treatment, within specific limits and conditions\u2014for example, meal vouchers, public transport, private health insurance or nursery vouchers.<\/p>\n\n\n\n

According to the Mercer Total Remuneration Survey 2026<\/a>, conducted among 700 Spanish companies with more than 100 employees, 46.3% of companies already offer flexible benefits as part of their reward package, compared with 42.5% in 2024. However, the real challenge is not whether a company offers flexible compensation, but how the programme is designed and implemented. When treated merely as a list of benefits, friction quickly emerges: low take-up, recurring questions and, in the worst cases, operational incidents caused by insufficient control over thresholds or weak implementation.<\/p>\n\n\n\n

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\u201cIn People & Talent, we see a clear pattern: when a plan is launched without governance or employee education, it is perceived as \u2018small print\u2019. When it is well explained and integrated into the compensation policy, it becomes a genuine differentiator for retention,\u201d says Alberto Diez de Celis, Director of People & Talent at Rib\u00e9Salat.<\/em><\/p>\n<\/blockquote>\n\n\n\n

Below, we explain what flexible compensation is, how it works in practice and which criteria companies should consider to implement it with legal certainty, operational control and a coherent employee experience.<\/p>\n\n\n\n

What is flexible compensation?<\/strong><\/h2>\n\n\n\n

Flexible compensation is a system under which employees voluntarily decide how to receive part of their annual remuneration, replacing a portion of cash salary with benefits in kind\u2014for example, private health insurance, transport, nursery vouchers or meal vouchers\u2014with tax advantages where legal requirements are met.<\/p>\n\n\n\n

Unlike a traditional salary increase, flexible compensation does not increase the employer\u2019s direct labour cost: it redistributes the structure of the remuneration package by making use of tax exemptions recognised by the Spanish Tax Agency<\/a>. The employment law framework is set out in Royal Legislative Decree 2\/2015 of 23 October<\/a>, approving the consolidated text of the Spanish Workers\u2019 Statute. The operational rollout\u2014benefit catalogue, communication, implementation and governance\u2014is covered in this complete guide to implementing flexible compensation<\/a>.<\/p>\n\n\n\n

Flexible compensation vs. employee benefit vs. benefits in kind<\/strong><\/h3>\n\n\n\n

It is important to distinguish between three concepts that are often confused:<\/p>\n\n\n\n