To deploy flexible compensation plan in your company requires 6 steps: preliminary analysis of the remuneration strategy, plan design, implementation with each employee, monthly payroll administration, internal communication and results evaluation. The process does not require complex infrastructure and can be managed through a specialised platform that automates operations.
A flexible remuneration scheme allows employees to allocate up to 30% of their gross salary to products exempt from income tax, thereby increasing their take-home pay without the company having to increase its wage bill. In this guide, we explain each of the six steps required to implement the scheme correctly, which products you can include, and how to avoid the most common mistakes.
A flexible remuneration plan (also known as a flexible compensation plan) is a remuneration system regulated by the Article 42 of Law 35/2006 on personal income tax, which allows employees voluntarily allocate up to 30% of their gross salary towards remuneration in kind, choosing between different goods or services with tax advantages.
These can include food vouchers, transport, childcare, training or health insurance, among others.
This way, the employee optimises their net salary without increasing the company's costs, and the organisation improves its remuneration policy and its ability to attract and retain talent.
In other words: It's a clever way to optimise payroll for both parties, as shown in this Example payslip with flexible benefits.
Before we start, do you know what the Social Benefits and Flexible RemunerationRead our article!
Implementing a flexible benefits plan requires planning and good communication. Follow these 6 steps:
Evaluate the plan's objectives (retention, motivation, taxation, etc.) and employee profiles. Listening to their needs will help you design a truly useful flexible compensation plan.
Expert advice: Carry out a brief internal survey to find out which benefits are of most interest before launching the programme.
Specify which products or services will be available, whilst adhering to the 30% limit on gross annual salary set out in Article 42 of Law 35/2006 on Personal Income Tax. Select a reliable supplier who can simplify administration and ensure tax compliance.
At this stage, it is important to meet with each employee to analyse what part of their salary they can allocate to the various services included in the plan and calculate the possible scenarios according to your needs. The duration of the plan must also be defined and the agreed conditions must be put in writing.
Ultimately, it's about designing a personalised flexible benefits programme, tailored to each employee's situation.
To ensure their success, it is crucial to clearly explain the tax and economic advantages This implies that employees will fully understand what they are selecting, avoiding misunderstandings or future surprises.
Once the collection system for each employee has been established, it is time to put it into practice. From here, the daily operational work begins: the monthly management related to product hiring, the preparation of payrolls, and the accounting record of payments made by the organisation.
It is worth noting that this management can be outsourced without incurring any additional costs. Currently, thanks to the platform Edenred Flex, Product procurement administration is much more agile and efficient. The time spent on these tasks has been significantly reduced, both for the company and for the employee requesting the solution.
Here you can see a Example payslip with flexible benefits!
Internal communication is key. Clearly explain the benefits, practical examples, and frequently asked questions. You can use information sessions, infographics, or short internal videos to increase adoption.
Review the plan's results: how many employees are using it, which benefits are most popular, and if satisfaction or retention has improved. Adjust the conditions according to tax changes or staff needs.
Throughout the process, there are intangible elements (beyond the Payroll calculations) that will impact the success of the flexible remuneration implementation:
Each company can configure its plan according to its workforce and budget. Some common examples are:
For the company, implementing a flexible remuneration plan It does not represent an additional salary cost: the amounts employees allocate to the plan come from their own gross salary, not from a new budget. The only cost is for the platform management service that administers the plan, which varies according to the number of employees and the products included. Against this cost, the company achieves savings in administrative management costs (by automating payroll and documentation) and an improvement in its value proposition for attracting and retaining talent. To estimate the specific return in your case, you can use the ROI calculator for businesses.
The management of a flexible benefits plan is carried out through a specialised platform that centralises product configuration, employee enrolment, control of tax limits and payroll reporting. Edenred Flex platform It integrates with the main payroll software on the market and reduces the administrative burden on the HR team by automating month-to-month operations.
If you're already clear that you want to implement a flexible remuneration plan, the next step is to choose a provider to guide you through the entire process. The Edenred team will guide you from the initial analysis to the first payroll with the plan applied: plan design, communication to staff, training for the HR team, and salary modification management.
Would you like to see how much you could save with a tailor-made plan? Calculate the return for your company with the ROI calculator for businesses, or the individual savings of an employee with the Flexible benefits calculator.
Request a demo of Edenred Flex y diseñamos contigo un plan de retribución flexible a medida para tu empresa, sin compromiso.
Human Resources professional with a solid track record in talent management and a strong commitment to optimising the employee value proposition. Throughout my career, I have had the opportunity to develop my expertise in international environments and consulting firms, specialising in talent attraction and retention through advanced strategies such as flexible remuneration. Currently, as Key Account Manager (KAM) at Edenred, I collaborate closely with major clients to design and implement strategic compensation and benefits solutions that enhance corporate well-being and organisational engagement.
