What is the Mixed Remuneration Model?
The Mixed Remuneration Model – also known as mixed social benefit – is a compensation system that combines two modalities in the same plan:
On the one hand, the company directly subsidises a portion of the profit as Social Benefitbear that cost entirely and the employee deducts nothing from their salary. On the other hand, the employee can supplement that amount – or add other products – by allocating part of their gross salary via Flexible Compensation, whilst benefiting from income tax exemption.
The result is a the most comprehensive, most customisable and most tax-efficient compensation plan either of the two options separately. For the company, it allows them to offer more value without incurring the total cost. For the employee, it combines a guaranteed benefit with the possibility of expanding their plan according to their needs.
Example: The company offers health insurance of €600/year. Assume €300 as a Social Benefit (tax-deductible as personnel expense). The employee contributes the other €300 via Flexible Remuneration, exempt from Income Tax up to the limit of €500/beneficiary. Result: optimised cost for the company and maximum tax advantage for the employee.
Advantages of the Hybrid Model
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What solutions can be included in the Hybrid Model?
Any of the products in the Edenred catalogue can be managed under a Mixed Model. The company decides which part it subsidises as Social Benefit and the employee can top up the rest via Flexible Compensation, benefiting from income tax exemption up to the legal limit for each product. It is not necessary to apply the Mixed Model to all products – it can be used for some while others are offered in pure BS or RF modalities.
Ticket Restaurant
Edenred Mobility
Edenred Nursery
Learning & Development
Health insurance with Flex
How to manage the Hybrid Model through Edenred Flex?
Alternative modalities to the Hybrid Model
Social Benefits
Social Benefits are a way of adding value to your team's salary by offering them additional products and services that enhance their well-being.
Flexible Compensation
Flexible Compensation allows your team to allocate part of their salary to tax-advantaged services to save and improve their purchasing power.
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Frequently Asked Questions about the Hybrid Model
What is the Mixed Remuneration Model?
The Mixed Model is the compensation system that combines Social Benefits and Flexible Compensation In a single plan: the company subsidises a portion of the profit, and the employee complements the rest with an income tax advantage.
Does the Hybrid Model impact on people's payroll?
No, the subsidised employee benefits do not affect the payroll, and the part managed through Flexible Compensation is deducted from gross salary, generating uncomplicated tax savings.
What happens if a person does not want to complement the Hybrid Model with Flexible Compensation?
No problem. Individuals can enjoy only the Social Benefits subsidised by the company without having to contribute any of their salary.
How long does it take to implement the Hybrid Model in a company?
The implementation of the Mixed Model It follows the same process as any BS or RF plan with Edenred: platform configuration, internal communication, and card activation. The usual timeframe from contracting to employees being able to use their benefits is 10 working days. The Mixed Model does not involve more complexity than a pure model – Edenred Flex automatically manages which part is Social Benefit and which part is Flexible Remuneration in each transaction.
What tools does Edenred provide to manage the Hybrid Model?
Edenred offers intuitive digital platforms, such as Edenred Flex, It is an easy and centralised way to manage social benefits and configure voluntary contributions for both companies and individuals.
What happens if someone wants to change the amount allocated in Flexible Compensation?
Employees can modify their Flexible Benefits contribution during the periods of adhesion enabled by the company (usually once a year or at the start of each financial period). The portion of Social Benefit the company's subsidy is unaffected by these changes – the employee can reduce or eliminate their RF share without losing the social benefit already allocated to them by the company.
What is the difference between a Mixed Model, Social Benefits, and Flexible Remuneration?
The difference is in who pays for what: Under the Social Benefits scheme, the company covers 100% of the cost; under the Flexible Remuneration scheme, the employee allocates part of their gross salary; under the Mixed Model, both parties contribute. There is no single ‘best’ option in absolute terms — the choice depends on the company’s budget, the profile of its workforce and the desired level of customisation.
Does the Mixed Model have a 30% limit on gross salary?
The limit of 30% of gross salary apply exclusively to the part of Flexible Compensation from the plan – that is, what the employee contributes from their own salary. The Social Benefit part that the company subsidises is not subject to that limit. Each part of the plan is taxed independently according to its type.
Do all employees have to participate in the Hybrid Model?
No. The Mixed Model has two parts with distinct participation logics. The part of Social Benefit the company defines it – it can offer it to all employees or specific groups, and the employee receives it automatically. The part of Flexible Compensation it is always 100% (voluntary) – each person decides if they want to supplement the company benefit with their own gross salary, and by what amount. Those who do not wish to participate in the RF part continue to receive the social benefit that the company has subsidised.
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