Tax and legal changes to Flexible Remuneration in 2026

Legal basis of Flexible Remuneration in Spain

Flexible Remuneration consists of granting part of the salary in kind, always complying with the established legal basis. A salary in kind within a Flexible Remuneration plan exists when:

• La law provides for it
• The collective bargaining agreement regulates it
• The employment contract has provided for it
• There is a Novation
  
  

According to the Convention 95 of the ILO, benefits in kind must adhere to three fundamental principles:

1. Mandatory partiality: Payment in kind can only be made partially, preventing an employee from allocating their entire remuneration to the plan's products or services.
2. Appropriate and beneficial: It should be beneficial for both the worker and his or her family, including social components.
3. Fair value: The value of the product or service should reflect its fair market price, guaranteeing equitable value for the monetary remuneration.
   
   

These principles ensure that Flexible Remuneration is fair, transparent, and aligned with the plan's social purpose.

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Three key Flexible Benefits innovations in 2026

In 2026, the management of Flexible Remuneration plans is impacted by three regulatory and social changes that companies must be aware of to ensure compliance and optimise their benefits:

National Minimum Wage 

The SMI it remains a fundamental benchmark for salary package planning. In 2026, it is in the negotiation phase with social partners, with a projected increase of 3.1%.

This increase has several implications for Flexible Benefits plans:

• Affects the maximum salary limit that can be allocated to benefits in kind, The basic salary must respect the SMI.
• Forces a review of existing plans to ensure that wage increases do not compromise the legality of the plan.
• This allows companies to adjust benefits to maintain a balance between cash and in-kind remuneration, ensuring that employees' minimum pay is not affected.

 

2. Transparency of Remuneration Directive

La Directive 2023/970 of the European Union regarding pay transparency, introduce significant changes in the management of salary plans and their internal communication:

• Auditable plans: Flexible Benefits documents must be easily auditable, detailing which groups of employees access which products and why.
• Accessible information for workers: If an employee requests information on their plan or how benefits are determined, the company must be able to provide it clearly and comprehensively.
• Equality and equity: The directive obliges to ensure that there is no discrimination in access to benefits, favouring fair treatment between workers in different departments or at different salary levels.

In practice, this means that Flexible Remuneration plans must be transparent, documented and subject to The internal control system strengthens the confidence of employees and reduces legal risks.

3. Inspection of Work with Artificial Intelligence 

La Employment Inspectorate is incorporating tools of artificial intelligence (AI) to analyse Flexible Remuneration plans and detect possible irregularities more efficiently.

This has a number of consequences for companies:

• Higher audit risk Companies must ensure that plans comply with tax and labour regulations to avoid penalties.
• Reputational impact: A detected breach can affect both the company's internal and external image.
• Need for complete documentation All access criteria, limits, updates and justifications must be perfectly documented, facilitating review and demonstrating compliance during inspection.

Taken together, these three developments oblige companies to Plan your Flexible Benefit schemes carefully, The EU's taxation of benefits in kind, ensuring that they are legal, transparent, auditable and equitable, while protecting workers' rights and optimising the taxation of benefits in kind.

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Comprehensive legal compliance checklist for Flexible Remuneration in 2026

To ensure a Flexible Remuneration plan complies with current regulations in 2026, it is essential to address the following six key criteria:

• Legal basis defined flexible benefits plan must be supported by a Solid legal framework. This can be an existing law, an applicable collective agreement, an individual contract or even a novation of a previously agreed contract. Having this basis ensures that salary flexibility policies have legal validity, avoiding the risk of challenges from workers or authorities.
  
  
• 30% limit respectedThe law establishes a Maximum Flexible Remuneration that can be applied to the worker's annual compensation, generally the 30% of gross salary. It is fundamental that the plan does not exceed this limit to maintain its fiscally beneficial nature and comply with labour regulations. Exceeding this percentage could involve tax adjustments or the loss of legal advantages.
  
  
• Annual scheduled update: Flexible Benefit Plans should be reviewed and updated every year. This prevents the benefits from becoming a established law so that employees can claim permanent or fixed status. An annual review allows for adaptation of the products offered, maintenance of consistency with current legislation, and correct management of the company's budgetary planning.
  
  
• Written documentationAll Flexible Benefit Plans must be formalised in writing. This includes the plan's terms, access conditions, included products, and applicable limits. Written documentation protects the company in the event of claims, inspections, or audits, and serves as clear reference for employees and human resources managers.
  
  
• Documented access criteria: It is necessary to establish and register Who can access each benefit within the plan. This can be based on job category, length of service, location, or any other legally permissible criterion. Having these criteria documented ensures transparency and reduces the risk of internal conflicts or accusations of unequal treatment.
  
  
• Audited equalityThe company must ensure that all workers have the right to equal access to products and benefits of the plan, avoiding discriminations, such as the Gender inequality. This requires periodic audits to verify that the plan distribution is equitable and that professionals understand how to access benefits. Audited equality reinforces trust in the policy and protects the company against potential legal claims.