24 February 2020

Flexible Remuneration Calculator: save more than you think

green piggy bank in the shape of a little pig stands on a calculator on a wooden table.

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More and more companies in Spain are opting for the flexible remuneration model. Some have made the decision after testing its advantages using a simple tool such as a calculator. Save, moderate spending, The best way to manage unforeseen costs is to manage them in the best possible way, because everything serves to increase cash flow. But if there is one thing that really works, it is an approach to pay that, at no extra cost to the company, increases workers' purchasing power and thus their motivation and productivity.

Calculate salaries with the calculator. Save on different business fronts

It all starts with a calculation. You need to find the right tool, the one that will allow you to know that money that, so far, you are not making good use of. This calculator shows you how much you can save by changing your approach to business remuneration..

Moving towards a model that combines monetary and in-kind payment is a way to deliver greater value to employees. The advantage of making this choice is that doing so is not an extra investment for the organisation. Flexible pay is the way to leave more money in the account at the end of the month. You earn the same, but in a different way:

  • A portion of the salary in euros, on which a levy is imposed.
  • Another part in kind, with a tax benefit. Transport Ticket, Childcare Ticket o Ticket Restaurant are free of tax obligations. This means that the employee can use the full amount received in this way for day-to-day expenses. 

For example, an employee who earns €24,000 gross per year and has two dependent children under the age of 25 could spend €11 per day, 20 days per month on the Restaurant Ticket. Doing so would guarantee him/her an additional €543.92 per year, as the available remuneration would be €19,451.85, instead of the €18,907.93 that he/she would receive without the payment in kind.

Using the calculator available online, you can see how much an employee with young children of nursery age saves. Let's assume that the gross salary is the same as in the previous case, €24,000, and that you have two children under the age of three. If you decide to set the amount of the Childcare Ticket at €600 per month, for 11 months per year, the increase in availability would be €1,483.42. This is achieved because the available remuneration would increase from €15,535.43 to €17,018.85 with the flexible remuneration.

There is no doubt that the entire workforce can end the month more comfortably, without costing the company an extra euro. ¿You are considering proposing the flexible remuneration model to your staff.? Get out the calculator, save and start enjoying a more positive working environment., The new, higher motivation and a boost to productivity in your business.

The net salary received increases, and this generates greater motivation and involvement in your company.

Edenred Spain